Metalico upsizes available revolver amount and adds term loan

By Sara Rosenberg

New York, Jan. 31 - Metalico Inc. amended its credit facility, increasing the available amount under its revolver to $70 million from $57 million and adding a $9 million term loan, according to an 8-K filed with the Securities and Exchange Commission on Monday.

Pricing on the revolver is Libor plus 325 basis points, and pricing on the term loan is Libor plus 375 bps.

Proceeds from the term loan will be used for capital expenditures.

In addition, the amendment adjusts the definition of fixed charges and several covenants, allowing for increases in permitted debt, capital expenditures and permitted acquisition baskets.

The amendment was completed on Jan. 27.

J.P. Morgan Securities LLC is the lead bank on the deal.

The company also said on Monday that it drew on its expanded credit facility to help fund the acquisition of Goodman Services Inc., a Bradford, Pa.-based full service recycling company.

Metalico is a Cranford, N.J.-based scrap metal recycler.

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