Century Aluminum closed a $175 million senior secured revolving credit facility with Wells Fargo as lead arranger and administrative agent. The new credit facility replaces the company’s existing $150 million senior secured revolving credit facility scheduled to expire in 2020.
According to a related 8-K filing, Credit Suisse, BNP Paribas and Bank of America are lenders for the facility.
Key terms of the new credit facility include, without limitation:
- A term of five years, through May 16, 2023
- An aggregate borrowing capacity of up to $175 million, including up to $110 million under a letter of credit sub-facility
- An uncommitted accordion feature, whereby Century may increase the capacity of the facility by up to $50 million, subject to agreement with the lenders
- Availability limited by a specified borrowing base consisting of certain percentages of accounts receivable and inventory which meet certain eligibility criteria
- Amounts outstanding bearing interest, at the company’s option, at LIBOR or a base rate, plus an applicable interest margin ranging from 1.25% to 1.75%, based on average daily availability
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As of May 16, 2018, there were no amounts outstanding under the new credit facility, with approximately $136 million of net availability after consideration of outstanding letters of credit.
