Ryerson Holding increased its existing asset-based revolving credit facility to,  among other things, increase the aggregate commitments to $1.3 billion and extend the maturity from Nov. 2025 to June 2027.

The company expects to continue to use the facility for general purposes in the ordinary course of business. The amended credit facility is secured by the inventory and accounts receivable of the company’s U.S. and Canadian operating subsidiaries.

Under the amended credit facility, Ryerson will receive pricing benefits if certain financial metrics are achieved. Ryerson will be able to lower its borrowing costs and significantly increase available liquidity. The amended credit facility was converted from a LIBOR to SOFR base rate with margins eligible to be 12.5 bps lower than the existing rates if certain financial metrics are achieved.

“The revolving credit facility upsize and extension is another important step in transforming and fortifying our balance sheet, allowing Ryerson to leverage its strong ‘through-the-cycle’ operating model and positions us for a successful exit from the high-yield borrower market in July while providing increased optionality as industry conditions remain in flux,” Jim Claussen, CEO for Ryerson, said.

Bank of America served as the administrative agent and collateral agent and BofA Securities, JPMorgan Chase Bank and Wells Fargo Bank were joint lead arrangers and joint bookrunners.