A.M. Castle amends loan basket under 12¾% senior secured notes

By Marisa Wong

Morgantown, W.Va., June 13 – A.M. Castle & Co. amended the terms of its 12¾% senior secured notes due 2018. The company entered into a supplement to the indenture governing the notes on June 9.

Holders representing 65.5% of the notes had consented to the changes, according to an 8-K filing with the Securities and Exchange Commission.

Under the original terms, until the company makes special redemptions totaling $40 million, the indenture imposed a temporary reduction in the amount of the senior credit facility basket under the debt incurrence covenant in an amount equal to net proceeds received from covered asset sales and used to temporarily repay debt outstanding under the company’s senior credit facility, subject to a dollar-for-dollar reduction to the extent that the notes are redeemed.

The company amended the indenture to limit the senior credit facility availability blocker amount to $40 million, subject to a dollar-for-dollar reduction to the extent that its notes are redeemed.

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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