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Wheeling-Pittsburgh Nears Deal to Refinance Existing Credit Facilities
08/20/2007 - Wheeling-Pittsburgh reaches agreement in principle with its lead banks on the terms of a $350-million revolving credit facility to replace its current $225-million facility, and a new $135-million term loan to replace its existing government guaranteed term loan.
Wheeling-Pittsburgh Corp., the holding company of Wheeling-Pittsburgh Steel Corp., has reached an agreement in principle with its lead banks on the terms of a $350 million revolving credit facility to replace its current $225-million facility, and a new $135-million term loan to replace its existing government guaranteed term loan.
The company expects to close on the new credit facilities prior to its pending combination with Esmark Inc.
Wheeling-Pittsburgh had announced its intention to refinance during its August 10, 2007 second-quarter earnings call.
“Upon completion, this interim financing package would enhance the company's near-term liquidity by allowing greater access to the company's working capital collateral and would eliminate the financial covenant contained in the existing term loan,” said Wheeling-Pitt Chairman and CEO James P. Bouchard.
“This agreement in principle represents an important next step to facilitate the merger with Esmark. Many people have contributed over the years to this great Company, and we wish to thank the Emergency Steel Loan Guarantee Board and Senators Rockefeller and Byrd. They saved this company in 2003. We also want to thank Governors Manchin and Strickland, Leo Girard and the United Steelworkers. Their unflagging support has provided the path forward to accomplish the planned combination of Wheeling-Pittsburgh and Esmark.”
Details of the financings, which are being finalized, are subject to change until final documentation is executed. The financing is subject to customary closing conditions.
