Haynes amends and restates revolver, cutting margin, extending term

By Jennifer Chiou

New York, July 20 - Haynes International Inc. entered into an amended and restated loan and security agreement on July 14, extending the maturity date of the revolving facility to July 14, 2016, according to an 8-K filed with the Securities and Exchange Commission.

Other changes included the decrease of the margin used to determine the interest rate by 100 basis points, the increase of the advance rates for certain working capital items included in the borrowing base and the increase of the sublimit for equipment purchase loans.

The amendment also boosts availability to $170 million from $120 million and reduces letter-of-credit fees.

Further, the commitment fee was cut to 25 bps per year on the unused amount of the U.S. revolver's total commitment.

Also, the changes decreased the required excess availability for the company to at least 15% of the maximum credit from at least $50 million, while adding a fixed-charge coverage ratio requirement of 1 to 1 for the 12 months ending the month immediately prior to the payment or repurchase date.

Haynes Wire Co. is also a borrower under the agreement, the filing said.

JPMorgan Chase Bank, NA was the documentation agent, and Wells Fargo Capital Finance, LLC was the agent.

Haynes is a Kokomo, Ind.-based developer, manufacturer, marketer and distributor of technologically advanced, high-performance alloys, primarily for use in the aerospace, land-based gas turbine and chemical processing industries.

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