Haynes International amends, extends credit facility, lowers some fees

By Wendy Van Sickle

Columbus, Ohio, July 13 – Haynes International, Inc. extended its credit facility to July 7, 2021 and reduced costs by lowering unused line fees and certain administrative fees on July 7 via an amendment to its third amended and restated loan and security agreement, according to an 8-K filing with the Securities and Exchange Commission.

The unused line fee was reduced to 20 basis points from 25 bps.

The loan agreement with Wells Fargo Capital Finance, LLC as agent had been set to expire on July 14, 2016.

The percentage of excess availability to maximum credit under which the fixed charge coverage ratio applies and a direct remittance event exists was reduced to 10% from 12.5%.

Additionally, the amendment accounts for Haynes Wire Co.’s merger with and into Haynes International as of May 2, resulting in Haynes International being the only current borrower under the credit agreement.

Also, the amendment provides for quarterly, rather than monthly, delivery of a borrowing base certificate so long as no loans are outstanding, and decreases the threshold of excess availability under which weekly delivery would be required to $15 million from $18 million and eliminates the fixed charge coverage ratio requirement for dividends and stock repurchases when excess availability is greater than 20% of the maximum credit.

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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