Castle closes financing agreement, continues operations

July 11, 2017 - A.M. Castle & Co., Oak Brook, Illinois, a global distributor of specialty metal and supply chain solutions, successfully closed its $85 million senior-secured, revolving, debtor-in-possession financing agreement with PNC Bank.

The loan, initially announced June 5, allow the service center chain to immediately reduce cash interest payments by replacing a substantial portion of its current first lien credit facilities, which carry 11 percent interest.

Additionally, Castle expects to use additional available capital from its cash on hand and the DIP Facility to invest in growth initiatives as it approaches the completion of its prepackaged financial restructuring later this summer.

With the financing and a $125 million senior-secured, asset-based revolving credit facility, Castle will be able to refinance certain existing secured debt and any DIP facility borrowing, provide additional capital to support uninterrupted operations and growth investments, President and CEO Steve Scheinkman said. "These measures to significantly reduce our interest burden, coupled with the successful completion of our financial restructuring process later this summer, should permit us to concentrate on growing our business, improving our service to customers, and strengthening our partnerships with vendors."

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