Tredegar Corporation (NYSE: TG), a Richmond-based manufacturer in the nonferrous metal industry with a $280 million market capitalization, has successfully amended its asset-based lending facility, according to a recent 8-K filing with the Securities and Exchange Commission.
On Monday, Tredegar entered into the Fifth Amendment to its credit agreement with JPMorgan Chase (NYSE: JPM) as the administrative agent and lender, along with other banks. The amendment extends the maturity date to May 6, 2030, and reduces interest rate margins to 1.75%-2.25% for Term Benchmark Loans and RFR Loans, and 0.75%-1.25% for ABR Loans, based on average quarterly availability.
The commitment fee has also been decreased from 0.40% to either 0.25% or 0.375%, depending on Average Usage. The borrowing base calculation has been revised to exclude real property, alter the PP&E Component, and cap eligible cash at 15% of the borrowing base.
Additional changes include a Cash Dominion Period triggered when availability falls below certain thresholds, and compliance with the fixed charge coverage ratio is required when availability is less than a specific percentage of the Line Cap.
Despite not being profitable over the last twelve months, Tredegar maintains a healthy financial position with a current ratio of 1.56, a total debt to capital ratio of 0.22, and moderate leverage. The company’s stock has gained 7.68% year-to-date.
Full details of the Fifth Amendment are included in Exhibit 10.1 attached to the SEC filing.
