Keystone obtains $50 million of credit facilities

New York, April 9 - Keystone Consolidated Industries, Inc. said it renewed its primary revolving credit facility and obtained a new asset-based term loan.

The revolver is for three years and up to $45 million, subject to a borrowing base. The term loan is for $5 million, also over three years.

The Dallas, Texas fencing and construction products company also closed on its five-year $10 million subordinated loan from the County of Peoria, Ill.

Keystone said it used proceeds of the Peoria loan and the term loan to pay down revolver debt and reduce its working capital deficit.

Keystone also disclosed detailed results of its previously announced exchange offer for its $100 million 9 5/8% senior secured notes.

Holders tendered $93.85 million principal amount of the notes, with $175,000 accepting a discounted cash amount and common stock, $79.2 million accepting new preferred equity and subordinated debt securities and $14.475 million accepting subordinated unsecured debt securities.

Of the old notes, $6.15 million remain outstanding, although the security provisions and most of the covenants have been eliminated through waivers received in the exchange offer.

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