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
"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).