A.M. Castle amends revolver to reduce commitments, increase pricing

By Marisa Wong

Morgantown, W.Va., June 30 – A.M. Castle & Co. amended its senior secured asset-based revolving credit facility with Wells Fargo Bank, NA as agent to reduce commitments to $100 million from $125 million, according to an 8-K filing with the Securities and Exchange Commission.

The company entered into the amendment on June 24, but the changes became effective June 27.

The amendment decreases aggregate commitments under the Canadian portion of the revolver to $16 million from $20 million, subject to a borrowing base, and the letter-of-credit facility portion of the revolver $16 million from $20 million, subject to a borrowing base.

In addition, the amendment revises the pricing grid, which is based on quarterly average undrawn availability. The applicable margin for Libor loans now ranges from 200 basis points to 250 bps.

Previously, the credit facility restricted the company’s ability to repay its 12¾% senior secured notes due 2018 and its 12¾% senior secured notes due 2016 unless the company is able to satisfy some financial testing conditions. With the amendment, the company is now permitted to repay up to $27.5 million of the 2018 second-lien notes and up to $6 million of the 2016 non-exchanged notes, subject to revised financial testing conditions.

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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