Globe Specialty Metals enters into $300 million five-year revolver

By Jennifer Chiou

New York, June 6 - Globe Specialty Metals, Inc. entered into on May 31 a $300 million five-year revolving multi-currency credit facility with Fifth Third Bank as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Fifth Third and Merrill Lynch are joint lead arrangers and bookrunners.

The credit agreement includes provisions for standby letters of credit, a $10 million sublimit for swingline loans and a $25 million sublimit letter-of-credit facility.

At the company's election, the facility may be increased from time to time by an amount up to $125 million, the filing stated.

The revolver terminates on May 31, 2017.

Borrowings will bear interest at Libor plus 175 basis points to 250 bps depending on leverage. The margin is initially 175 bps.

The 8-K said that the various covenants include, among others, a maximum total debt to EBITDA, a minimum interest coverage ratio and a maximum capital expenditures covenant.

Also, a joint venture company that is 51% owned by Globe has a $20 million amended and restated revolving credit facility with Fifth Third Bank.

New York-based Globe produces silicon metal, foundry alloys and steelmaking alloys.

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