Synalloy Signs New Revolving Credit Facility

Rhea-AI Summary

Synalloy Corporation (NASDAQ:SYNL) announced the establishment of a new four-year revolving credit facility, allowing for up to $150 million in borrowing capacity. This facility replaces the previous $100 million revolving credit line and $20 million term loan. It matures on January 15, 2025, and was arranged by BMO Harris Bank. Interim CEO Chris Hutter highlighted that this refinancing offers favorable terms, enhances the company’s balance sheet, and provides financial flexibility for long-term growth. Notably, there are no financial covenants as long as borrowings remain above a certain threshold.

Positive

• New four-year revolving credit facility of up to $150 million.
• Replaces previous $100 million revolving facility and $20 million term loan.
• Matures on January 15, 2025, providing extended financial terms.
• No financial covenants required as long as borrowing stays above a threshold.
• Lower interest rates on borrowings enhance cost-effectiveness.

Negative

• None.

Synalloy Corporation (NASDAQ:SYNL) (“Synalloy” or the “Company”) today announced that it has entered into a new, four-year revolving credit facility that provides up to $150 million of borrowing capacity.

The new facility matures on January 15, 2025 and replaces and terminates the previous $100 million revolving facility that was scheduled to mature on December 21, 2021 and the $20 million term loan facility scheduled to mature on February 1, 2024. The new facility was provided by BMO Harris Bank, N.A. as Agent and sole lender.

“This refinancing expands Synalloy’s access to capital on very favorable terms,” said Chris Hutter, Synalloy’s interim Chief Executive Officer. “The new facility strengthens our balance sheet and provides greater financial flexibility as we invest in the long-term growth of our company and execute on our strategy to deliver value to all of our stakeholders.”

In addition to a lower interest rate on borrowings and a meaningful increase in borrowing capacity, the Company is not required to maintain any financial covenants so long as available borrowings do not fall below a threshold amount.

Additional details regarding Synalloy’s new credit agreement are set forth in the company’s Current Report on Form 8-K, to be filed with the Securities and Exchange Commission on or about January 19, 2021.

About Synalloy Corporation
Synalloy Corporation (Nasdaq:SYNL) is a growth oriented company that engages in a number of diverse business activities including the production of stainless steel and galvanized pipe and tube, the master distribution of seamless carbon pipe and tube, and the production of specialty chemicals. For more information about Synalloy Corporation, please visit our website at www.synalloy.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210119005233/en/

FAQ

What is the new credit facility amount for Synalloy Corporation (SYNL)?

Synalloy Corporation has established a new credit facility of up to $150 million.

When does the new credit facility for SYNL mature?

The new credit facility for Synalloy Corporation matures on January 15, 2025.

Which bank is providing Synalloy's new credit facility?

The new credit facility is provided by BMO Harris Bank, N.A.

What benefits does the new credit facility offer Synalloy (SYNL)?

The new facility offers a lower interest rate, increased borrowing capacity, and no financial covenants.

What will Synalloy do with the new credit facility?

Synalloy plans to use the facility to invest in the long-term growth of the company.