Reichhold and Reichhold Industries have replaced their North American senior secured revolving facility with a new $70 million delayed-draw term loan facility provided by funds managed by Oaktree Capital Management.

Bank of America will continue in its capacity as the administrative agent for the lenders under such term loan facility. The term loan facility replaces the company’s revolving credit facility and provides the company with financing for ongoing general corporate needs.

The company made a single draw of $65 million on the closing date. The company may request additional draws not exceeding $5 million in total.

“We are pleased to be working with Oaktree who provided the funds for our new Term Loan Facility. This new facility will provide Reichhold with enhanced financial flexibility to continue to pursue value creation opportunities including potential consolidation in our industry,” said John Gaither, chairman, president and CEO of Reichhold Industries.

“The term loan facility is another important step to provide our North American business with additional liquidity and financial flexibility to satisfy our capital requirements to serve our customer base,” said Roger Willis, Reichhold Industries chief financial officer.

Durham, NC-based Reichhold is a manufacturer of unsaturated polyester resins and a leading supplier of coating resins for a wide variety of markets. Reichhold has manufacturing operations throughout North America, Latin America, the Middle East, Asia and Europe.