Friedman Industries increases ABL revolver to $75 million

By Wendy Van Sickle

Columbus, Ohio, March 15 – Friedman Industries, Inc. entered into a first amendment to its credit agreement with JPMorgan Chase Bank, NA as administrative agent on March 11 to increase the asset-based revolving loans available to up to $75 million from up to $40 million, according to an 8-K filing with the Securities and Exchange Commission.

The facility may be increased up to a total of $10 million in minimum increments of $5 million.

The amendment also sets term SOFR as the basis for the interest rates. Borrowings will now bear interest at term SOFR plus an adjustment of 10 basis points plus a margin of 170 bps.

The company said it entered into the amendment as a precautionary measure due to recent volatility in both the physical and financial markets related to its products and further uncertainty associated with industry and geopolitical circumstances.

The manufacturer and processor of steel products is based in Humble, Tex.

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