CLEVELAND (AFX) - Ferro Corp., which makes industrial coatings and chemicals, said Tuesday it completed a secured credit agreement for $700 million in credit and loans to improve liquidity and refinance debt.
The company secured a $250 million revolving line of credit and $450 million in term loans.
It will use the five-year credit line for working capital and general purposes. Ferro can add another $50 million in credit once it completes its 2005 Securities and Exchange Commission filings. The company is restating results from previous years.
Ferro also said it can use $95 million of the six-year term loan to refinance existing credit borrowing. The remainder of the term loan can be used to refinance existing long-term loans and debt. The term loans can be drawn at the company's discretion during the first year and won't be due until the sixth year.
The credit was arranged by National City Bank and Credit Suisse. KeyBank served as the documentation agent.
Ferro additionally said it extended its $100 million asset securitization program until June 5, 2007. Citibank arranged the extension.
Ferro President and CEO James Kirsch said the revolving credit line and asset securitization 'provide us with ample liquidity for our day-to-day operations,' and that the term loans 'will let us manage any requirement to refinance our outstanding debt.'
Ferro closed 37 cents higher at $17.56 on the New York Stock Exchange. The stock has traded in a 52-week range of $16.27 to $23.22.
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