CMC Enters Two Year Sale of Accounts Receivables Facility
04/12/2011 - Commercial Metals Co. and several of its subsidiaries have entered into a facility with Wells Fargo Bank, N.A to provide for a two-year sale of accounts receivables.
Commercial Metals Co. and several of its subsidiaries have entered into a facility with Wells Fargo Bank, N.A to provide for a two-year sale of accounts receivables.
This new facility, which replaces the accounts receivable securitization program that expired in January 2011, is a two-year program that currently provides committed funding to $100 million, and includes the flexibility to increase the funding amount.
The facility provides an additional source of liquidity for the company beyond the existing $400-million commercial paper program and committed Credit Agreement.
"This new agreement reflects our continued efforts to ensure that CMC has sufficient liquidity with financial flexibility,” commented Murray R. McClean, CMC's Chairman and Chief Executive Officer. “This facility will provide added financial support for our planned growth, both organic and through future investments."
Headquartered in Irving, Texas, Commercial Metals Co. and subsidiaries manufacture, recycle and market steel and metal products, related materials and services through a network including steel minimills, steel fabrication and processing plants, construction-related product warehouses, a copper tube mill, metal recycling facilities and marketing and distribution offices in the United States and in strategic international markets.
