Allegheny Technologies (ATI) announced that it has closed on the previously announced asset-based lending revolving credit facility that replaces its $400 million revolving credit facility. The five-year $400 million ABL facility is collateralized by the accounts receivable and inventory of ATI’s domestic operations.

According to a related 8-K filing, ATI entered into the facility with a lender group led by PNC Bank as agent and PNC Capital Markets as sole lead arranger and sole bookrunner. The applicable interest rate for borrowings under the revolver includes spreads that range between 1.25% and 1.75% for LIBOR-based borrowings and 0.25% and 0.75% for base rate borrowings.

ATI said, compared to its previous revolving credit facility, the ABL facility contains no leverage or interest coverage ratios, and the borrowing costs are expected to be lower. There is no impact on ATI’s outstanding bonds as a result of replacing the previous facility with the ABL facility.

“The new ABL facility helps secure our solid liquidity position,” said Pat DeCourcy, senior vice president, finance and CFO. “We are pleased to have received strong support on the new facility from our banking group.”