A.M. Castle adds $25 million last-out revolver to credit agreement

By Sarah Lizee

Olympia, Wash., June 4 – A.M. Castle & Co. amended its revolving credit and security agreement with PNC Bank, NA as agent on Friday to provide for an additional $25 million of borrowing capacity, according to an 8-K filing with the Securities and Exchange Commission.

The expanded credit facility provides for an additional $25 million last-out revolving B credit facility made available in part by way of participation in the facility by some of the company’s shareholders.

The facility will bear interest at 12% per year and be paid-in-kind unless the company elects to pay interest in cash and some conditions are satisfied.

The existing $125 million revolving A credit facility bears interest at Libor plus 300 basis points.

Both revolvers mature on Feb. 28, 2022.

In connection with the amendment, the company entered into a supplemental indenture and amendment to increase the cap on debt under the expanded credit facility to $175 million, plus up to an additional $15 million.

A.M. Castle is a distributor of specialty metal and plastic products, value-added services and supply-chain services based in Oak Brook, Ill.

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