Universal Stainless & Alloy Products, Inc. has amended its credit agreement with PNC Bank, which consists of a PNC Term Loan and a PNC Revolving Line of Credit.

Under the Third Amended and Restated Credit Agreement, the company is replacing the existing term loan, which has a principal balance of $1.95 million, with a new $10.0 million term loan. The revolving credit line remains at $15 million. The new credit agreement also removes certain limitations on the company's annual capital expenditures and on its ability to borrow from other sources, among other amended terms.

Interest rates on borrowings under both the PNC Line and the PNC Term loan are based on LIBOR (London Interbank Offered Rates) and are further adjusted based upon Universal Stainless maintaining certain financial ratios. The company noted that the new term loan will be used to fund its capital expenditure program, including the previously announced addition of a vacuum arc remelt (VAR) furnace at its Bridgeville facility.

Headquartered in Bridgeville, Pa., Universal Stainless & Alloy Products, Inc. manufactures and markets a broad line of semi-finished and finished specialty steels, including stainless steel, tool steel and certain other alloyed steels. The company's products are sold to original equipment manufacturers, service centers, forgers, rerollers and wire redrawers.