Ferroglobe closes new $100 million five-year asset-based revolver

By Sarah Lizee

Olympia, Wash., Oct. 11 – Ferroglobe plc closed a new $100 million five-year asset-based revolving credit facility, according to a press release.

Subsidiaries Globe Specialty Metals, Inc. and QSIP Canada ULC are the borrowers, and PNC Bank, NA is the agent.

The ABL revolver replaces the company’s existing revolver.

At closing, the initial drawing under the ABL revolver together with cash from Ferroglobe’s balance sheet will be used to discharge in full the company’s obligations under the revolver, repurchase some accounts receivable from the company’s securitization program and pay associated fees and expenses.

Going forward, drawings under the ABL revolver will be used to fund working capital needs of Globe and its subsidiaries and for general corporate purposes.

At the current drawn amount, the ABL revolver bears interest at Libor plus 300 basis points, versus Libor plus 350 bps on the previous revolver.

It also has a minimum liquidity requirement of $32.5 million, including $10 million of undrawn availability under the ABL, compared to a $150 million pledged cash requirement under the previous revolver prior to Sept. 30.

The maximum amount available under the ABL revolver is subject to a borrowing base comprising North American inventory and accounts receivable of Globe and some of its subsidiaries.

Finally, it contains no leverage-based or financial ratio-based covenants.

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

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