Globe Specialty Metals refinances loan to extend maturity, cut rates

By Jennifer Chiou

New York, Aug. 20 - Globe Specialty Metals, Inc. announced that it has refinanced its revolving credit facility with a syndicate of banks led by RBS Citizens to extend the maturity to Aug. 20, 2018 from May 31, 2017 and reduce interest.

According to a news release, the changes improve pricing and increase flexibility while maintaining the capacity of the credit facility at $300 million. The loan has an accordion feature for an additional $150 million.

The borrowing rate was cut by 25 basis points, the release stated. Certain covenants were simplified, including the maximum total net debt to earnings before income tax, depreciation and amortization ratio and the minimum interest coverage ratio.

The release added that the new facility also provides expanded financial flexibility to make strategic capital investments, acquisitions, divestitures and fund returns to shareholders.

The revolver is co-led by PNC Bank, Wells Fargo Bank, as joint book managers and joint lead arrangers. Other banks include BBVA Compass, BB&T, Citibank, Fifth Third Bank, Capital One and HSBC Bank.

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

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