Banner
News

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."

LATEST ISSUE 
MM Cover0917 digital

vert-current-linewhiteNovember 2017

FULL CIRCLE

A European aluminum producer boosts capacity by 50 percent and becomes more sustainable with high recycling rate.

> READ THIS
MONTH'S ISSUE

Instagram - @ModernMetalsMag

MM digitaal archive banner 330

Modern Metals on Twitter

Banner

TrendPublishing 6 16 mm

Instagram Icon Large twitter facebook linkedin rss

MM Cover0917 preview FFJ Cover0917 preview mm 0917 brandingcovers2 3 2 Consumables 0917