Olympic Steel Announces Completion of Amendment and Extension of Credit Facility

Rhea-AI Summary

Olympic Steel Inc. (Nasdaq: ZEUS) has amended and extended its $475 million asset-based revolving credit facility to June 16, 2026. This facility is secured by the company's accounts receivable, inventory, and property, excluding real estate, and includes a $200 million increase option. Currently, Olympic Steel has about $190 million available under this facility, which will be used for working capital and acquisitions. CFO Richard A. Manson highlighted the amendment's role in providing low-cost capital for operations and future growth.

Positive

• Extension of credit facility to June 2026 provides long-term liquidity.
• Ability to add real estate as collateral gives financial flexibility.
• Current availability of approximately $190 million supports working capital and growth.

Negative

• None.

Olympic Steel Inc. (Nasdaq: ZEUS), a leading national metals service center, today announced that it has amended and extended the maturity of its existing $475 million, five-year asset-based revolving credit facility through June 16, 2026.

The revolving credit facility is secured primarily by the accounts receivable, inventory and property and equipment of the Company, excluding real estate. The facility includes an increase option of up to $200 million. Additionally, the amendment provides for the ability to add real estate as collateral, at the Company’s discretion.

Upon entering into the amendment and extension, the Company had approximately $190 million of availability under the credit facility. The Company intends to use funds borrowed under the revolving credit facility for working capital needs, acquisitions and funding of future growth initiatives.

“The amendment and five-year extension of our revolving credit facility provides us with an excellent source of low-cost capital to sustain our ongoing operations, as well as additional capital to fund acquisitions and our organic growth,” said Olympic Steel Chief Financial Officer Richard A. Manson. “Our continued focus on working capital management and operating expense efficiency has afforded us a great deal of liquidity and flexibility under the revolving credit facility. We appreciate the ongoing support of the syndicate of banks involved in the credit facility.”

Bank of America, N.A. is the Administrative Agent and Joint Lead Arranger. BofA Securities, Inc. is the Joint Bookrunner. Wells Fargo Bank, National Association is the Joint Lead Arranger, Joint Bookrunner and Syndication Agent. Keybank National Association is the Documentation Agent.

About Olympic Steel
Founded in 1954, Olympic Steel is a leading U.S. metals service center focused on the direct sale of processed carbon, coated and stainless flat-rolled sheet, coil and plate steel, aluminum, tin plate, and metal-intensive branded products. The Company’s CTI subsidiary is a leading distributor of steel tubing, bar, pipe, valves and fittings, and fabricator of value-added parts and components. Headquartered in Cleveland, Ohio, Olympic Steel operates from 36 facilities in North America.

For additional information, please visit the Company’s website at www.olysteel.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210616005971/en/

FAQ

What is Olympic Steel's new credit facility maturity date?

Olympic Steel's credit facility maturity date is extended to June 16, 2026.

How much is the revolving credit facility that Olympic Steel has?

The revolving credit facility amounts to $475 million.

What will Olympic Steel use the funds from the credit facility for?

The funds will be used for working capital needs, acquisitions, and future growth initiatives.

What is the current availability under Olympic Steel's credit facility?

Olympic Steel has approximately $190 million of availability under the credit facility.

Who are the joint lead arrangers for Olympic Steel's credit facility?

Bank of America and Wells Fargo are the joint lead arrangers for the credit facility.