A.M. Castle boosts revolving credit facility to $125 million

By Toni Weeks

San Luis Obispo, Calif., Jan. 22 - A.M. Castle & Co. increased its revolving credit facility to $125 million from $100 million on Wednesday, according to a press release.

The increased facility size, which was provided by an existing lender, is currently supported by the company's borrowing base and is fully available to the company to borrow against, less customary reserves.

An accordion feature could boost the revolver by $25 million, the release noted.

According to chief financial officer Scott Stephens, the expansion of the credit facility will provide the company the ability to continue to purchase and retire its senior secured notes while preserving liquidity.

No terms or conditions were changed within the credit facility, and the company is currently in compliance with all financial covenants.

As of Dec. 31, the company did not have any outstanding borrowings under the revolver and had $31 million of cash balances.

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

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