Empire Resources cuts committed credit facility to $162.5 million

By Susanna Moon

Chicago, June 15 – Empire Resources, Inc. reduced its committed credit facility by $22.5 million to $162.5 million, according to an 8-K filing with the Securities and Exchange Commission.

The company amended its credit agreement Tuesday with Cooperatieve Rabobank UA, formerly known as Cooperatieve Centrale Raiffeisen-Boerenleenbank BA, New York Branch, as agent.

The amendment also increases the cap on eligible inventory as a percentage of the borrowing base to 75% from 65%, reduces the minimum base amount required for the net working capital covenant calculation to $37.5 million from $42.5 million and reduces the letter of credit sublimit to $65 million from $75 million.

Empire also amended its uncommitted credit agreement with Rabobank as agent to reduce the uncommitted credit facility by $40 million to $50 million.

The amended uncommitted credit agreement also renews the uncommitted facility for one year by extending the termination date for the revolving credit line to June 19, 2017 from June 18, 2016, increases the cap on eligible inventory as a percentage of the borrowing base to 75% from 65%, cuts the minimum base amount required for the net working capital covenant calculation to $37.5 million from $42.5 million and trims the letter of credit sublimit to $20 million from $35 million.

Empire Resources is a Fort Lee, N.J., distributor of semi-finished metal products to customers in the transportation, automotive, housing, appliance and packaging industries.

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