Universal Stainless & Alloy tweaks credit facility with PNC

Chicago, Oct. 24 – Universal Stainless & Alloy Products Inc. amended its revolving, term loan and security agreement with PNC Bank, NA on Oct. 19, according to an 8-K filing with the Securities and Exchange Commission.

The amendment modifies the agreement from March 17, 2021.

Under the amendment, the inventory sublimit maximum used to determine borrowing available under the revolver has been increased to $80 million, from $75 million, through March 31, 2023. There is an overall borrowing availability maximum of $105 million.

The company may use up to $5 million of collateral that otherwise would not be available as a result of the inventory sublimit for the purposes of calculating compliance with the minimum borrowing availability requirements through March 31, 2023.

The interest rates have also shifted to a SOFR basis, from Libor. Interest is now, based on undrawn availability, SOFR plus 200 basis points to 250 bps for revolving loans. Term loans are now SOFR plus 250 bps to 300 bps.

PNC Bank, NA is the co-collateral agent with Bank of America, NA.

PNC Capital Markets LLC is the sole lead arranger and sole bookrunner.

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

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