A. M. Castle adds Wells Fargo as lead on $100 million ABL revolver

By Sara Rosenberg

New York, Dec. 1 - A. M. Castle & Co. has signed Wells Fargo Securities LLC as a lead arranger on its $100 million four-year senior secured asset-based revolving credit facility, joining left lead and bookrunner Jefferies & Co., according to a market source.

The revolver is being syndicated to a select group of banks, the source said.

Proceeds will be used, along with $225 million of senior secured notes and $50 million of convertible senior notes, to fund the acquisition of Tube Supply Inc. and refinance existing debt.

Under the purchase agreement, A. M. Castle is buying Tube Supply, a Houston-based distributor of specialty tubular and bar products for the oil and gas industry, for $165 million.

Completion of the transaction is expected by the end of the first quarter of 2012, subject to customary conditions and regulatory approvals.

A. M. Castle is an Oak Brook, Ill.-based distributor of specialty metal and plastic products, value-added services and supply chain services.

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