AMG Advanced Metallurgical Group NV entered into new credit facilities totaling US$650 million, which will replace existing credit facilities of US$400 million, according to a Feb. 1 company statement.
The company will use the proceeds to refinance its existing credit facility, which was due to expire in July 2021, and provide capital to fund strategic expansion projects.
The new facilities include a US$350 million seven-year senior secured term loan B facility, a US$200 million five-year senior secured revolving credit facility and a US$100 million five-year letter-of-credit facility to support AMG Engineering.
CEO Heinz Schimmelbusch said the facility will help the company increase EBITDA to at least US$200 million withing five years.
In mid-January, S&P Global Ratings assigned AMG a BB- corporate credit rating with a stable outlook and a BB- issue-level rating to its proposed seven-year US$300 million term loan B and US$200 million revolving credit facility maturing 2023.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.
