Synalloy refinances asset-based loans with BB&T, ups to $80 million

By Susanna Moon and Sarah Lizee

Chicago, July 2 – Synalloy Corp. said it refinanced its asset-based credit facility with Branch Banking and Trust Co. and increased the size to $80 million from $65 million.

Additionally, the interest rate was reduced by 20 basis points to one-month Libor plus 165 bps, according to an 8-K filing with the Securities and Exchange Commission.

The facility continues to mature on Oct. 30, 2020.

The loans will be used to finance its subsidiary Bristol Metals, LLC’s purchase of Marcegaglia USA’s galvanized tube operations for $10 million as well as Store Capital’s purchase of Marcegaglia USA’s facility in Munhall, Pa., according to a company announcement.

Proceeds also will be used for working capital needs and to fund future acquisitions.

“The continued strong performance of our company has provided an opportunity to not only increase our borrowing capacity by $15.0 million, but to do so at a reduced interest rate,” Craig C. Bram, president and chief executive officer of Synalloy, said in the press release.

The Spartanburg, S.C., company makes pipe and piping systems from carbon, chrome, stainless steel and other alloys.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.