Summary
Allegheny Technologies Incorporated (ATI) announced the execution of a new $400.0 million senior secured revolving credit facility on September 23, 2015. This new facility, maturing in September 2020, replaces a prior credit facility that was set to expire in May 2018. The new revolving credit facility offers a letter of credit sub-facility of up to $200.0 million and a swingline sub-facility of up to $50.0 million, with the flexibility to increase the facility size by an additional $200.0 million without lender consent under certain conditions. The collateral for this facility includes accounts receivable and inventory. Key financial covenants include a minimum fixed charge coverage ratio of 1.00:1.00 under specific default or low availability scenarios, and a liquidity requirement of at least $500.0 million 91 days prior to the maturity of the company's 2019 Senior Notes. The agreement also contains standard covenants and events of default. This refinancing provides ATI with updated credit terms and extended maturity, aimed at supporting its ongoing operational and strategic needs.
Key Highlights
- 1ATI entered into a new $400.0 million senior secured revolving credit facility on September 23, 2015.
- 2The new facility matures in September 2020, extending the maturity from the prior facility which was set to expire in May 2018.
- 3The facility includes a $200.0 million letter of credit sub-facility and a $50.0 million swingline sub-facility.
- 4The company has the option to increase the revolving credit facility by up to an additional $200.0 million, subject to certain conditions.
- 5The credit facility is secured by the company's accounts receivable and inventory.
- 6A financial covenant requires a minimum fixed charge coverage ratio of 1.00:1.00 under certain default or low availability conditions.
- 7ATI must demonstrate a liquidity of at least $500.0 million prior to the maturity of its 2019 Senior Notes.