PITTSBURGH, May 02, 2019 (GLOBE NEWSWIRE) -- L.B. Foster Company (NASDAQ: FSTR), a leading manufacturer and distributor of products and services for transportation and energy infrastructure, today announced that on April 30, 2019, it amended its revolving credit facility agreement to provide for a maturity date of April 30, 2024 and improve the interest rate spreads associated with the facility. Key elements to the amendment include:

• The facility was modified to $140 million in order to better align the facility with our anticipated needs as well as to reduce borrowing costs, and provides for incremental borrowings of up to $50 million.
• The Company’s obligations under the amendment will be secured by the grant of a security interest by the borrowers, certain Canadian and United Kingdom subsidiaries, and domestic guarantors in substantially all of the assets owned by such entities. Additionally, the equity interests in each of the loan parties, other than the Company, and the equity interests held by each loan party in their subsidiaries, shall be pledged to the lenders as collateral for the lending obligations.
• There are no restrictions on the amount of dividends, distributions and redemptions under the amended facility so long as the Company remains in compliance before and immediately after any such transactions.
• Acquisitions will be permitted up to $50 million per acquisition and an aggregate purchase price of $100 million through the five year term of the amended facility.

James P. Maloney, Senior Vice President and Chief Financial Officer, said: “This revised credit agreement provides L.B. Foster with the capacity it needs to manage its day to day operations and to execute on business opportunities that benefit our shareholders. We are pleased with the amended interest rate pricing associated with the agreement which is favorable to the Company and is a result of our current financial strength and forward business outlook.”

The Company’s five bank group is led by PNC Bank, N.A. as Administrative Agent, with Bank of America N.A. and Wells Fargo Bank N.A. and Citizens Bank, N.A., as Co-Syndication Agents, and BMO Harris Bank, N.A. as a participant.

Additional information concerning the revolving credit facility can be found in the Current Report on Form 8-K filed by the Company.

About L.B. Foster Company

L.B. Foster is a leading manufacturer and distributor of products and services for transportation and energy infrastructure with locations in North America and Europe. For more information, please visit www.lbfoster.com.