NEW YORK Universal Stainless & Alloy Products Inc. has amended its credit agreement with a syndicate of banks to "better manage the current cyclicality of its markets."
The amended agreement provides an allowance for specific capital expenditures that wont be included in the fixed-charge calculation through the third quarter of 2013, the Bridgeville, Pa.-based company said.
The agreement also lowers the minimum fixed-charge coverage ratio and raises the maximum permitted leverage ratio, with a new pricing tier, through June 30, 2014.
"This amendment will permit us to remain on course with our strategic capital investment plan during the period of recovery in supply channel demand," Universal chairman, president and chief executive officer Dennis Oates said in a statement. "The modification to the covenants permits flexibility to maintain improvement projects during economic and cyclical downturns."
In February, Oates told AMM that the cyclical nature of the stainless industry had contributed to the companys 24.2-percent drop in fourth-quarter 2012 sales (amm.com, Feb. 7).