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Olympic Steel Completes New Credit Facility
Jul. 12, 2010 Olympic Steel, Inc. completed a new $125 million five-year asset based credit facility on June 30. The new ABL facility, which replaces the company’s existing $130 million credit facility that was due to expire in December 2011, provides the ability to increase the size of the facility up to $175 million, subject to certain conditions.
The new ABL facility has a maturity date of June 30, 2015. Bank of America, N.A. is agent for the ABL facility; the lending group includes JPMorgan Chase Bank, N.A., KeyBank National Association, and Comerica Bank.
“The new ABL facility provides Olympic Steel with improved availability and greater flexibility to grow our business over the next five years, while lowering our borrowing cost, as compared to our prior facility,” said the company’s Chief Financial Officer, Richard T. Marabito. “The ABL facility, together with the three-year $200 million shelf registration statement filed with the Securities and Exchange Commission in 2009, provides Olympic Steel with a favorable capital structure to grow through greenfield locations and acquisition opportunities.”
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. Headquartered in Cleveland, Ohio, the company operates 16 facilities.