Search Copying and distributing are prohibited without permission of the publisher
Email a friend
  • To include more than one recipient, please separate each email address with a semi-colon ';', to a maximum of 5

  • By submitting this article to a friend we reserve the right to contact them regarding AMM subscriptions. Please ensure you have their consent before giving us their details.

Universal Stainless amends credit deal

Keywords: Tags  Universal Stainless & Alloy Products, credit agreement, stainless demand, Dennis Oates, destocking, Daniel Fitzgerald

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 won’t 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 company’s 24.2-percent drop in fourth-quarter 2012 sales (, Feb. 7).

Have your say
  • All comments are subject to editorial review.
    All fields are compulsory.

Latest Pricing Trends