A. M. Castle reached an agreement with its first lien lender, PNC Bank, to provide an additional $25 million last out revolving B borrowing capacity under its existing first lien credit facility. This was made available, in part, through participation in the credit facility by certain of the company’s stockholders.
President and CEO Steve Scheinkman said, “The expanded credit facility will immediately increase Castle’s liquidity, enhancing the company’s ability to serve and grow with our customers’ businesses, as well as by our ability to capitalize on strengthening volumes, end markets and pricing. Moreover, the enhanced liquidity will allow us to evaluate additional capital expenditure and strategic opportunities. We appreciate this strong showing of support by our stockholders and PNC.”
In connection with the credit agreement amendment, the company entered into a supplemental indenture and amendment to the indenture securing its 5%/7% second lien notes. The supplemental indenture, among other things, increases the cap on indebtedness under the expanded credit facility to $175 million (plus up to an additional $15 million).
Founded in 1890, Oak Brook, IL-based A. M. Castle is a global distributor of specialty metal and supply chain services.
