Century Aluminum Company (NASDAQ:CENX) Files An 8-K Entry into a Material Definitive AgreementItem 1.01.Entry into a Material Definitive Agreement.
On May 16, 2018, Century Aluminum Company (the “Company”) and certain of its direct and indirect domestic subsidiaries (together with the Company, the “Borrowers”), entered into an amended and restated $175 million senior secured revolving credit facility, dated as of May 16, 2018 (the “New Credit Facility”). The New Credit Facility replaces the Company's existing $150 million senior secured revolving credit facility (the “Original Credit Facility”) that was scheduled to expire in 2020. Wells Fargo Capital Finance, LLC acted as lead arranger and will be the agent under the New Credit Facility, and Credit Suisse AG, Cayman Islands Branch, BNP PARIBAS and Bank of America, N.A. will act as lenders.
Key terms of the New Credit Facility include, without limitation:
term of five years, through May 16, 2023; |
aggregate borrowing capacity of up to $175 million, including up to $110 million under a letter of credit sub-facility; |
an uncommitted accordion feature whereby Borrowers may increase the capacity of the facility by up to $50 million, subject to agreement with the lenders; |
availability limited by a specified borrowing base consisting of certain percentages of accounts receivable and inventory which meet certain eligibility criteria; and |
amounts outstanding bear interest, at the Company’s option, at LIBOR or a base rate, plus an applicable interest margin ranging from 1.25% to 1.75% based on average daily availability. |
As of May 16, 2018, there were no amounts outstanding under the New Credit Facility and approximately $136 million of net availability after consideration of outstanding letters of credit.
Other than as described above, the terms of the New Credit Facility remain substantially the same as the Original Credit Facility.
The description of the New Credit Facility set forth above is necessarily limited and is qualified in its entirety by reference to the full terms and conditions of the New Credit Facility, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated by reference herein. The description of the Original Credit Facility is necessarily limited and is qualified in its entirety by reference to the full terms and conditions of the Original Credit Facility, which was filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on May 28, 2013, as amended.
Item 2.03.Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information described above under Item 1.01 above is incorporated herein by reference into this Item 2.03. No borrowings were made on the closing date under the New Credit Facility.
Item 9.01 Financial Statements and Exhibits.
(d)Exhibits
CENTURY ALUMINUM CO ExhibitEX-10.1 2 ex1012ndarloansecurityagr.htm EXHIBIT 10.1 LOAN & SECURITY AGR Exhibit __________________________________________________CENTURY ALUMINUM COMPANYCENTURY ALUMINUM OF SOUTH CAROLINA,…To view the full exhibit click here
About Century Aluminum Company (NASDAQ:CENX)
Century Aluminum Company (Century) is a holding company, which is a producer of primary aluminum and operates aluminum reduction facilities, or smelters, in the United States and Iceland. The Company operates through primary aluminum segment. Its primary aluminum facilities produce standard grade primary aluminum products. Its annual primary aluminum production capacity is approximately 1,013,000 tons per year (tpy). Its principal subsidiaries are Century Kentucky, Inc. (CAKY), Nordural ehf (Nordural), Century Aluminum Sebree LLC (Century Sebree), Century Aluminum of South Carolina (CASC) and Century Aluminum of West Virginia, Inc. (Century of West Virginia). Its CAKY operates a primary aluminum reduction facility in Hawesville, Kentucky (Hawesville). Nordural Grundartangi ehf, a subsidiary of Nordural, operates a primary aluminum reduction facility in Grundartangi, Iceland (Grundartangi). Its Mt. Holly, located in Goose Creek, South Carolina, is a primary aluminum reduction facility.