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Stelco Announces $100 Million Term Loan
November 5, 2019
Source: Yahoo Finance
Stelco Holdings Inc. ("Stelco" or the "Company") (STLC.TO) today announced that its wholly-owned subsidiary, Stelco Inc. ("Stelco Inc.") has amended its asset-based credit facility ("ABL Credit Facility") to include a $100 million secured term loan due August 2023 (the "Loan"). The interest rate on Loan is, at the Company's election, either (a) the Canadian prime rate plus 1.25% - 1.75% or (b) CDOR/ LIBOR plus a margin of 2.25% - 2.75%, in each case, depending on the amount that had been drawn under the ABL Credit Facility and payable monthly. The Loan is being made available through the existing ABL Credit Facility with the current syndicate of lenders. Stelco Inc. intends to use the net proceeds from the Loan for capital expenditures and general corporate purposes.
David Cheney , Stelco's Chief Executive Officer commented, "Stelco's strong balance sheet affords many alternatives for financing that are more flexible and at lower cost than what is available from other capital sources, including the high yield market. By securing low-cost incremental liquidity, which is pre-payable at any time without penalty, Stelco remains very well positioned to execute our business plan."
Stelco is a low cost, integrated and independent steelmaker with one of the newest and most technologically advanced integrated steelmaking facilities in North America . Stelco produces flat-rolled value-added steels, including premium-quality coated, cold-rolled and hot-rolled steel products. With first-rate gauge, crown, and shape control, as well as reliable uniformity of mechanical properties, our steel products are supplied to customers in the construction, automotive and energy industries across Canada and the United States as well as to a variety of steel services centres, which are regional distributers of steel products.
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