CLEVELAND, July 8, 2010 (GLOBE NEWSWIRE) -- Olympic Steel, Inc. (Nasdaq:ZEUS), a national metals center, announced that it completed a new $125 million five-year asset based credit facility on June 30, 2010 (the "ABL Facility"). The new ABL Facility, which replaces the Company's existing $130 million credit facility that was due to expire in December 2011, provides, subject to certain conditions (including obtaining additional commitments) at any time prior to maturity, the ability to increase the size of the facility up to $175million. The new ABL Facility has a maturity date of June 30, 2015. Bank of America, N.A. is agent for the ABL Facility, and the lending group includes JPMorgan Chase Bank, N.A., KeyBank National Association and Comerica Bank.
The Company's Chief Financial Officer, Richard T. Marabito, stated, "The new ABL Facility provides Olympic Steel with improved availability and greater flexibility to grow our business over the next five years, while lowering our borrowing cost, as compared to our prior facility. The ABL Facility, together with the three-year $200 million shelf registration statement filed with the Securities and Exchange Commission in 2009, provides Olympic Steel with a favorable capital structure to grow through greenfield locations and acquisition opportunities."
Founded in 1954, Olympic Steel is a leading U.S. metals service center focused on the direct sale and distribution of large volumes of processed carbon, coated and stainless flat-rolled sheet, coil and plate steel and aluminum products. Headquartered in Cleveland, Ohio, the Company operates 16 facilities. For further information, visit the Company's web site at http://www.olysteel.com.
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Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as "may," "will," "anticipate," "should," "intend," "expect," "believe," "estimate," "project," "plan," "potential," or "continue," as well as the negative of these terms or other similar expressions. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those implied by such statements. Readers are cautioned not to place undue reliance on these forward-looking statements. Further information on risks and uncertainties is provided under Item 1A "Risk Factors" of our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which disclosure is incorporated herein by reference, and elsewhere in reports that the Company files or furnishes with the SEC. This release speaks only as of its date and the Company undertakes no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law. You are advised, however, to consult any further disclosures the Company makes on related subjects in its reports filed with or furnished to the SEC, including its current report on Form 8-K filed on July 7, 2010 related to the ABL Facility.