Olympic Steel Increases and Extends Asset Based Credit Agreement to Support Future Growth
December 13, 2017 07:30 AM Eastern Time
Loan Agreement Increased to $400 Million; Term Extended to 2022
Olympic Steel Inc. (Nasdaq: ZEUS), a leading national metals service center, today announced that it has entered into an amended and restated five-year loan and credit agreement.
The amended and restated facility, led by Bank of America as agent bank, replaces the Company’s previous credit agreement, increases the size of credit facility from $365 million to $400 million, and extends the maturity to December 8, 2022. Additionally, the new credit agreement allows for lenders to increase commitments up to a total of $600 million, subject to certain conditions. At closing, the Company had approximately $199 million of outstanding borrowings and $137 million of availability under the new credit agreement.
Richard Marabito, Olympic Steel’s Chief Financial Officer said, “The increased borrowing capacity and more favorable terms provided by this agreement underscore the confidence our lenders have in our business. The low-cost capital structure enhances our flexibility and positions us well for both internal and external growth opportunities.”
About Olympic Steel
Founded in 1954, Olympic Steel is a leading U.S. metals service center focused on the direct sale and distribution of large volumes of processed carbon, coated and stainless flat-rolled sheet, coil and plate steel and aluminum products. The Company’s CTI subsidiary is a leading distributor of steel tubing, bar, pipe, valves and fittings, and fabricates pressure parts for the electric utility industry. Headquartered in Cleveland, Ohio, Olympic Steel operates from 30 facilities in North America.
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Olympic Steel Investor Relations
Matthew J. Dennis, CFA, 216-672-0522