Synalloy closed a new $45 million asset-based credit facility with BB&T and entered into a purchase and sale agreement for sale-leaseback of its real estate properties in Tennessee, South Carolina, Texas and Ohio.

The ABL will be used to refinance the existing line of credit and two term loans currently outstanding to BB&T in the amount of approximately $24.2 million.

The new maturity date is February 28, 2019. Interest on the line is LIBOR+1.85%. Borrowings under the line are limited to an amount equal to a borrowing base calculation that includes eligible accounts receivable and inventory.

Pursuant to the credit agreement, Synalloy was required to pledge all of its tangible and intangible properties, including the stock and membership interests of its subsidiaries. In the credit agreement, BB&T agreed to release its liens on the real estate properties covered by the PSA, assuming that transaction closes successfully.

President and chief executive officer Craig Bram said, “The ABL and expected sale-leaseback combine to provide the Company with maximum funding capacity and flexibility, while maintaining a very attractive weighted average cost of capital. We expect to use the funds mainly to retire term debt, finance high ROI capital projects and pursue acquisitions.”