Kaiser Aluminum has entered into a $375 million, five-year senior secured revolving credit facility replacing its previously existing facility that was due to mature in December 2020.
The new facility increases the lending commitment by $75 million and provides more favorable pricing and greater flexibility than the previous facility. As of the October 30, 2019 effective date, borrowing availability under the new facility, net of outstanding letters of credit, was approximately $353 million based upon a borrowing base of eligible accounts receivable and inventory and certain machinery and equipment. There are no borrowings under the revolving credit facility.
According to a related 8-K filing, Wells Fargo served as administrative agent for the transaction.
“A key component of our business strategy is to maintain strong liquidity and financial flexibility that will continue to support ongoing growth and investment in our business and allow us to maintain our strong competitive position throughout the economic cycles of the end markets we serve,” said Jack A. Hockema, chairman and chief executive officer. “We are pleased that our lending banks continue to acknowledge our strong business model and prudent financial management and we appreciate their continued commitment and support.”
Foothill Ranch, CA-based Kaiser Aluminum is a producer of semi-fabricated specialty aluminum products, serving customers worldwide with highly-engineered solutions for aerospace and high-strength, custom automotive, general engineering, and other industrial applications
