Grede Holdings LLC, the ferrous foundry group recently formed by the merger of Citation Corp. and Grede Foundries Inc. secured a new revolving credit and security agreement with Bank of America as a lender and as agent for the lenders. Wells Fargo Capital Finance is a co-lender on the transaction.
The new, three-year agreement provides up to $60 million to support the new company with working capital and cash for other general corporate purposes. The credit line is secured by Grede’s accounts receivables and inventory. It expires in February 2013.
“Given the restrictive credit markets of today, the new financing agreement validates Grede’s actions as further evidence of the Company’s future vitality,” stated chief financial officer Lou Lavorata,
He added: “Through our rigorous turnaround activities, we have brought together two well-positioned companies that have outstanding synergies, a strong balance sheet, low debt, and excellent support from our bank partners.”
New Grede Secures $60 Million
Ferrous foundry group lands revolving three-year credit line