Universal Stainless & Alloy Products’ updated ABL
08 August 2018
Universal Stainless & Alloy Products, Inc. has announced that it has entered into an amended and restated five-year USD $120 million asset-based lending (ABL) credit agreement with PNC Bank, National Association. The new agreement increases the maximum line of the company's revolving credit facility to USD $110 million, reduces the term loan facility to USD $10 million and includes a more favorable interest rate structure. The new credit agreement will expire in August 2023. The amended and restated credit agreement supersedes the Company's prior ABL credit agreement with PNC Bank, which was scheduled to expire in January 2021.
Additionally, the company also announced today that it has reached a six-year collective bargaining agreement with the hourly employees at its North Jackson Specialty Steel facility represented by Local Unit 2332-2 of the United Steelworkers. The new six-year collective bargaining agreement has been ratified by the bargaining unit and is effective as of July 1, 2018. The new contract contains flexible work rule terms and profit sharing incentives.
Dennis Oates, Chairman, President and Chief Executive Officer, commented: “We are very pleased to take another major step forward in strengthening Universal's balance sheet and enhancing our financial flexibility to support our growth strategy as we focus on the current robust market opportunities. Additionally, we are pleased that we have a labor agreement at our North Jackson Specialty Steel facility that is in the best interests of our employees, customers and shareholders.”
Image courtesy of Universal Stainless & Alloy Products, Inc.