AMPCO-PITTSBURGH CORPORATION (NYSE:AP) Files An 8-K Entry into a Material Definitive Agreement
Amendment to Credit Agreement
On June 23, 2020, certain subsidiaries of Ampco-Pittsburgh Corporation (the Corporation), Air & Liquid Systems Corporation, Union Electric Steel Corporation, Alloys Unlimited and Processing, LLC, Akers National Roll Company, Union Electric Steel UK Limited, Åkers AB and Åkers Sweden AB (collectively the Borrowers) entered into the Fourth Amendment (the Amendment) to the Revolving Credit and Security Agreement, dated May 20, 2016, as amended on October 31, 2016, on March 2, 2017, and on September 28, 2018, with certain lenders, the guarantors party thereto, including the Corporation, PNC Bank, National Association, as agent for the lenders, and the other lenders party thereto (collectively, the Credit Agreement).
to the Amendment, the Credit Agreement was amended to, among other things: (i) extend the Maturity Date to May 20, 2022, (ii) maintain at all times Undrawn Availability of not less than the greater of $12,500,000.00 and 12.5% of the Maximum Revolving Advance Amount, (iii) reduce the Maximum Revolving Advance Amount to (x) the difference of (a) $92,500,000.00 less, (b) solely for purposes of determining revolving advances, on any applicable date of determination, the then-applicable amount of the reserve required under the Amendment, plus (y) any increases in the Maximum Revolving Advance Amount permitted under the Credit Agreement and minus (z) any permanent reductions at the election of the Borrowers in accordance with Section 2.2(f) of the Credit Agreement and (iv) increase the interest rate to a rate per annum equal to the agreed applicable margin, which includes interest rate spreads based on available borrowing capacity that range from 2.75% and 3.25% for LIBOR-based borrowings and 1.75% and 2.25% for domestic rate borrowings. In addition, an exiting lender assigned its advances and revolving commitment to existing lenders and a new lender, M&T Bank. All other material terms, conditions, and covenants with respect to the Credit Agreement remain unchanged.
The foregoing description of the Amendment does not purport to be complete and is qualified in its entirety by reference to the Amendment, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference in its entirety. Any capitalized terms used in this Current Report on Form 8-K, but not defined herein have the meaning set forth in the Credit Agreement or the Amendment, as applicable.
To the extent applicable, the information included in Item 1.01 is incorporated by reference into this Item 2.03.
(d) Exhibits. The following material is filed as an exhibit to this Current Report on Form 8-K: