BRIDGEVILLE, Pa., Aug. 06, 2018 (GLOBE NEWSWIRE) -- Universal Stainless & Alloy Products, Inc. (Nasdaq: USAP) announced today that it has entered into an amended and restated five-year $120 million asset-based lending (ABL) credit agreement with PNC Bank, National Association. The new agreement increases the maximum line of the Company's revolving credit facility to $110 million, reduces the term loan facility to $10 million and includes a more favorable interest rate structure. The Company’s obligations under the amended and restated credit agreement continue to be collateralized by substantially all of the Company's accounts receivables, inventory, and fixed assets. The new credit agreement will expire in August 2023.
The amended and restated credit agreement supersedes the Company's prior ABL credit agreement with PNC Bank, which was scheduled to expire in January 2021.
In addition, the Company announced today that it has reached a six-year collective bargaining agreement with the hourly employees at its North Jackson Specialty Steel facility represented by Local Unit 2332-2 of the United Steelworkers.
The new six-year collective bargaining agreement has been ratified by the bargaining unit and is effective as of July 1, 2018. The new contract contains flexible work rule terms and profit sharing incentives.
Dennis Oates, Chairman, President and Chief Executive Officer, commented: “We are very pleased to take another major step forward in strengthening Universal's balance sheet and enhancing our financial flexibility to support our growth strategy as we focus on the current robust market opportunities.
“Additionally, we are pleased that we have a labor agreement at our North Jackson Specialty Steel facility that is in the best interests of our employees, customers and shareholders.”
About Universal Stainless & Alloy Products, Inc.
Universal Stainless & Alloy Products, Inc., established in 1994 and headquartered in Bridgeville, PA, manufactures and markets semi-finished and finished specialty steels, including stainless steel, nickel alloys, tool steel and certain other alloyed steels. The Company's products are used in a variety of industries, including aerospace, power generation, oil and gas, and heavy equipment manufacturing. More information is available at www.univstainless.com.
