SCHAUMBURG, Ill.--(BUSINESS WIRE)--Jul. 18, 2017--
Today, Global Brass and Copper Holdings, Inc. (NYSE: BRSS) (“GBC” or the
“Company”) closed the amendment and repricing of its long term debt (the
“Term Loan B Credit Agreement”) agreement and amendment of the Asset
Based Revolving Credit (the “ABL Facility”).
“The amendments to our Term Loan B Credit Agreement and our ABL Facility
strengthen our capital structure and increase our financial flexibility.
The reduction in our interest rate spread, decreased limitations on
restricted payments, and the elimination of the leverage covenant
reinforces our commitment towards enhancing shareholder value,” said
John Wasz, GBC’s President and Chief Executive Officer.
The amendment reduces the price on the $318.4 million Term Loan B Credit
Agreement due July 18, 2023 by eliminating the grid pricing, which was
at LIBOR plus 425 basis points at current leverage levels, to a straight
LIBOR plus 325 basis points. The amendment also eliminates the 4x total
net leverage ratio maintenance covenant.
Additionally, the Company amended its existing $200.0 million ABL
Facility due July 18, 2021 to reduce the limitations on making
restricted payments, with similar changes being made in the Term Loan B
For both the Term Loan B Credit Agreement and ABL Facility, no changes
were made to the total amount, tenor, or scheduled amortization of those
The repricing transaction was led by J.P. Morgan Chase Bank NA.
Additional details of the credit facility are outlined in the Company’s
Current Report on Form 8-K filed with the Securities and Exchange
Commission on July 18, 2017.
About Global Brass and Copper
Global Brass and Copper Holdings, Inc. through our wholly-owned
principal operating subsidiary, Global Brass and Copper, Inc., is a
leading, value-added converter, fabricator, processor and distributor of
specialized non-ferrous products in North America. We engage in metal
melting and casting, rolling, drawing, extruding, welding and stamping
to fabricate finished and semi-finished alloy products from processed
scrap, virgin metals and other refined metals. Our products include a
wide range of sheet, strip, foil, rod, tube and fabricated metal
component products that we sell under the Olin Brass, Chase Brass and
A.J. Oster brand names. Our products are used in a variety of
applications across diversified markets, including the building and
housing, munitions, automotive, transportation, coinage,
electronics/electrical components, industrial machinery and equipment
and general consumer markets.
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Source: Global Brass and Copper Holdings, Inc.
Christopher J. Kodosky
Global Brass and Copper Holdings, Inc.