Ormet amendment provides for new term loan and revolver expansion

By Sara Rosenberg

New York, May 23 - Ormet amended its credit facility, getting an additional $30 million term loan and increasing its ABL revolver to $60 million from $50 million, according to a news release.

The new term loan due March 2, 2014 is priced at 14%, and was issued at an original issue discount of 95. It is pre-payable at par after March 1, 2012.

In addition, the amendment allowed for the new debt, revised the capital spending limitations for 2011 and 2012 and permits the State of Louisiana to take a first mortgage on a parcel of land at Burnside in conjunction with entering into a $1.5 million Economic Development Loan Program.

Proceeds from the new debt and increased revolver availability and support from the State of Louisiana will be used to restart and operate the company's alumina refinery.

The amendment was completed on May 6.

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

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