Commercial Metals signs $600 million revolver, $200 million term loan

By Wendy Van Sickle

Columbus, Ohio, Oct. 26 – Commercial Metals Co. and wholly owned subsidiary CMC International Finance Sarl entered into a sixth amended and restated credit agreement with Bank of America, NA as administrative agent, swingline lender and letter-of-credit-issuer on Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

The restated agreement provides for a $600 million revolver, increased from $400 million, and a $200 million term loan. Both tranches mature on Oct. 26, 2027.

Borrowings bear interest at term SOFR plus a credit spread adjustment of 10 basis points plus a margin ranging from 100 bps to 200 bps, based on debt ratings. The initial margin is 150 bps.

The term loan may be drawn within 12 months of closing.

The company will be required to make principal payments on the term loan in quarterly installments in an amount equal to 0.625% of the originally drawn principal amount for the first 12 months after the loan is drawn and 1.25% of the originally drawn principal amount thereafter.

BofA Securities, Inc., Wells Fargo Bank, NA, PNC Capital Markets LLC and Citibank, NA are the joint lead arrangers and bookrunners. Wells Fargo, Citi and PNC are the syndication agents.

Commercial Metals will be required to maintain an interest coverage ratio of not less than 2.5 to 1.00 and a debt to capitalization ratio that does not exceed 0.6 to 1.00.

Proceeds may be used for general corporate purposes.

On the closing date, the company gave notice to terminate its accounts receivable facility with Wells Fargo as agent on Nov. 9.

Commercial Metals manufactures, recycles and markets steel and metal products as well as related materials and services and is based in Irving, Tex.

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