Universal Stainless & Alloy Products completed a five-year $120 million asset-based lending credit agreement with PNC Bank._x000D_
The new agreement increased the maximum line of the company’s revolving credit facility to $110 million, reduced the term loan facility to $10 million and included a more favorable interest rate structure. The new agreement supersedes the company’s prior ABL credit agreement with PNC Bank, which was scheduled to expire in January 2021, and has a new expiration date in August 2023.
The company’s obligations under the credit agreement continue to be collateralized by substantially all of its accounts receivables, inventory and fixed assets.
Universal Stainless concurrently reached a six-year collective bargaining agreement with the hourly employees at its North Jackson Specialty Steel facility represented by Local Unit 2332-2 of the United Steelworkers. The new six-year contract contains flexible work rule terms and profit sharing incentives.
Dennis Oates, Universal Stainless chairman, president and CEO, said, “We are very pleased to take another major step forward in strengthening Universal’s balance sheet and enhancing our financial flexibility to support our growth strategy. Additionally, we are pleased that we have a labor agreement at our North Jackson facility that is in the best interests of our employees, customers and shareholders.”
Founded in 1994 and headquartered in Bridgeville, PA, Universal Stainless & Alloy Products manufactures and markets semi-finished and finished specialty steels, including stainless steel, nickel alloys and tool steel.
