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Universal Stainless releases details on $95 million ABL agreement
By Tali Rackner
Norfolk, Va., Jan. 25 – Universal Stainless & Alloy Products, Inc. announced details on its new $95 million five-year asset-based lending credit agreement that replaced a credit agreement that was set to expire in March, according to an 8-K filing with the Securities and Exchange Commission.
PNC Bank, NA is the administrative agent and collateral agent.
The new credit agreement provides for an up to $65 million senior secured revolving credit facility and a $30 million senior secured term loan facility.
There is an up to $10 million sub-facility for letters of credit and an up to $6.5 million sub-facility for swingline loans.
There is an up to $90 million accordion feature on the revolver, which may be used in up to two increments of at least $10 million each.
Interest on the revolver is Libor plus 250 basis points to 325 bps and interest on term loan borrowings is Libor plus 300 bps to 375 bps, each based on the company’s leverage ratio.
The facilities will expire upon the earlier of Jan. 21, 2021, and 90 days prior to the scheduled maturity date of the company’s new convertible notes.
The financial covenants require Universal Stainless to maintain a minimum fixed charge coverage ratio of 1.1 times beginning Dec. 31, 2016, measured on a rolling four-quarter basis.
Bank of America, NA is a co-collateral agent with PNC Bank. PNC Capital Markets LLC is the lead arranger and bookrunner.
Universal Stainless is a Bridgeville, Pa.-based manufacturer and marketer of semi-finished and finished specialty steels, including stainless steel, tool steel and certain other alloyed steels.
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