Bayou Steel Corp. is amending and restating its line of credit from $45 million to $75 million. The newly amended line will also provide lower borrowing rates, higher advance rates, and a nearly four year extension of the current arrangement.

The company expects to complete the upsizing of its line of credit by the end of November 2005.

Bayou Steel says it has discontinued its efforts to secure a $50 million term loan as announced in July 2005. In addition, the Board of Directors has indefinitely deferred consideration of a special dividend.

Bayou Steel Corp. manufactures light structural and merchant bar products in LaPlace, La., and Harriman, Tenn. The company also operates three stocking locations along the inland waterway system near Pittsburgh, Chicago, and Tulsa.