Ormet gets $160 million facility to refinance debt and make pension contributions

By Sara Rosenberg

New York, March 2 - Ormet Corp. closed on a new $160 million credit facility, according to a news release.

Proceeds are being to refinance all outstanding debt, make contributions to the pension plans to satisfy the company's 2006 waiver with the Pension Benefit Guaranty Corp. and provide liquidity for other general corporate purposes.

The facility consists of a $50 million three-year revolver priced at Libor plus 275 basis points and a $110 million four-year term loan priced at 14% with an original issue discount of 95.

The revolver was placed with Wachovia Capital Finance Corp. and is secured by a first lien on current assets and a second lien on all other assets.

Bank of New York Mellon is the agent on the term loan, which is secured by a first lien on the property plant and equipment and a second lien on the balance of the assets.

In connection with the term loan, the company has issued warrants to acquire 1.85 million shares of its common stock to term lenders. The warrants are exercisable at $3 per share and have a term of five years.

Ormet is a Hannibal, Ohio-based producer of aluminum.

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