RTI International Metals gets $150 million five-year restated revolver

By Angela McDaniels

Tacoma, Wash., May 30 - RTI International Metals, Inc. entered into a second amended and restated credit agreement on May 23 for a $150 million senior revolving credit facility due May 23, 2017, according to an 8-K filing with the Securities and Exchange Commission.

The revolver has a $100 million accordion feature, a $15 million swing line sublimit and a $40 million letter-of-credit sublimit.

The interest rate is Libor plus 125 basis points to 225 bps, depending on the company's ratio of consolidated net debt to consolidated EBITDA. The commitment fee ranges from 25 bps to 50 bps.

PNC Bank, NA is the administrative agent. Fifth Third Bank is the syndication agent and co-lead arranger with PNC Capital Markets LLC, which also acted as bookrunner.

RTI has the ability from time to time to voluntarily reduce the commitments by $2 million or any whole multiple of $1 million in excess of $2 million.

The revolver is guaranteed by the material domestic subsidiaries of RTI. These include RMI Titanium Co., Extrusion Technology Corp. of America, RTI Finance Corp., RTI Martinsville, Inc., Remmele Engineering, Inc., REI Medical, Inc. and any other subsidiary that in the future owns 5% or more of the consolidated assets of RTI and its subsidiaries.

RTI also pledged 65% of the outstanding stock of RTI-Claro, Inc., its only material foreign subsidiary, for the purposes of the revolver.

The financial covenants require that RTI maintain a ratio of consolidated net debt to consolidated EBITDA of no more than 3.5 times and a ratio of consolidated EBITDA to consolidated cash interest expense of at least 2 times.

RTI International is a Pittsburgh-based producer of titanium mill products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.