Universal Stainless & Alloy obtains $120 million five-year credit facility

By Rebecca Melvin

New York, March 19 – Universal Stainless & Alloy Products Inc. entered into a second amended and restated revolving credit, term loan and security agreement with PNC Bank, NA, as administrative agent and co-collateral agent, and Bank of America, NA, as co-collateral agent, according to an 8-K filing with the Securities and Exchange Commission.

PNC Capital Markets LLC is lead arranger and bookrunner of the new, five-year credit agreement, which includes up to $105 million in a senior secured revolver and a $15 million senior secured term loan facility.

The facility also provides for a letter of credit sub-facility not to exceed $10 million and a swing loan sub-facility not to exceed $10 million.

The facilities, which expire on March 17, 2026, are collateralized by a first lien on substantially all of the assets of the company and its subsidiaries, except that no real property is collateral other than the company’s real property in North Jackson, Ohio.

Co-borrowers with the company are subsidiaries Dunkirk Specialty Steel LLC and North Jackson Specialty Steel LLC.

Under the term loan, the co-borrowers will pay quarterly installments of principal of about $535,714.29, plus accrued and unpaid interest.

The interest rate is Libor plus 200 basis points, and the commitment fee for the revolver is 25 bps.

The new credit agreement amends and restates the a prior credit agreement dated as of Aug. 3, 2018, which was the first amended and restated revolving credit, term loan and security agreement.

Universal Stainless & Alloy Products is based in Bridgeville, Pa., and manufactures semi-finished and finished specialty steels.

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