Empire Resources announced it has entered into a new $225 million working capital credit facility with an international consortium of banks, led by Rabobank International as lead arranger and administrative agent and BNP Paribas as syndication agent.
The credit lines consist of two secured, asset-based credit facilities: a committed credit facility of $150 million, which bears interest on borrowings at 2.35% over LIBOR, and an uncommitted facility of $75 million, which bears interest on borrowings at 1.85% over LIBOR.
The committed facility also allows for an additional increase in the credit facility of $75 million, to a total of $300 million, subject to certain conditions. The committed facility, which matures on June 19, 2017 and the uncommitted facility, replace the company’s current $200 million three-year secured, asset-based facility, which bears interest on borrowings at 2.5% above LIBOR and was scheduled to mature on June 30, 2014. The financial and other covenants in the new agreements are similar to the current agreement
Fort Lee, NJ-based Empire Resources is a distributor of a wide range of semi-finished metal products to customers in the transportation, automotive, housing, appliance and packaging industries in the U.S., Canada, Latin America, Australia, New Zealand and Europe.