Ryerson Holding announced it entered into a new $1 billion credit facility secured primarily by the inventory and accounts receivables of the company’s U.S. and Canadian operating subsidiaries, replacing its previous credit facility.

According to a related 8-K filing, the lender group was led by Bank of America as administrative agent and collateral agent.

Ryerson has used the new facility to repay its previous facility and intends to use the new facility for general corporate purposes, which may include working capital needs, capital expenditures, funding of possible acquisitions, and satisfaction of other obligations of the company.

The new credit facility has a maturity date of the earlier of July 24, 2020 or 60 days prior to the stated maturity of any outstanding indebtedness with a principal amount of $50 million or more. Under the new agreement, the total credit facility size was reduced to $1 billion, the interest rate on current outstanding borrowings decreased 50 basis points, and commitment fees on amounts not borrowed were reduced 12.5 basis points, as compared to the prior credit facility. The credit facility also includes a swing line and a letter of credit facility.

“Ryerson’s strong banking relationships and continuing transformation momentum allowed us to take advantage of favorable asset-based lending market conditions to lower our interest rate and extend the maturity date,” stated Erich Schnaufer, Ryerson’s interim chief financial officer. “This opportunistic refinancing will reduce our borrowing costs while maintaining the ability to draw funds as needed to further the next leg of the company’s transformation.”

Chicago-based Ryerson is a processor and distributor of metals with operations in the United States, Mexico, Canada, China and Brazil.