Ferroglobe decreases revolver to $150 million and adjusts covenants

By Sarah Lizee

Olympia, Wash., Oct. 1 – Ferroglobe plc obtained the consent of its lenders for and entered into an amendment to its existing revolving credit agreement, reducing commitments to $150 million from $200 million, according to a press release.

The amendment also

• Reduces the minimum unrestricted cash required to be maintained by the company at all times to $70 million;

• Adds a requirement for the company to maintain, at all times, an aggregate amount of restricted cash equal to (i) the amount outstanding under the revolver at any time minus (ii) $100 million, in a blocked deposit account, which will be in addition to the minimum cash requirement;

• Provides that any breach of the financial covenants requiring the company to maintain a maximum net total leverage ratio or a minimum interest coverage ratio as of the end of the fiscal quarter ending Sept. 30 will not constitute an event of default under the revolver until Oct. 30; and

• Imposes additional requirements for the company to deliver some information and documentation to the revolver lenders.

The amount outstanding under the revolver is $133 million.

Ferroglobe is a London-based supplier of silicon metal, silicon-based specialty alloys and ferroalloys.

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