Synalloy closes on ABL credit facility for $45.0 million
September 1, 2016
Synalloy Corporation (Nasdaq:SYNL) today announced the closing of a new asset based (“ABL”) credit facility with its bank, Branch Banking and Trust Company (“BB&T”), and its entrance into a purchase and sale agreement for sale-leaseback of its real estate properties in Tennessee, South Carolina, Texas and Ohio.
The ABL with BB&T is in the amount of $45.0 million and will be used to refinance the existing line of credit and two term loans currently outstanding to BB&T in the aggregate amount of approximately $24.2 million.
The sale-leaseback carries a purchase price of $22.0 million, and the Company expects net proceeds (after transaction-related costs) of approximately $21.75 million. Upon closing of the sale-leaseback, the Company will enter into absolute triple net leases with the purchaser pursuant to which the Company will lease the locations for an initial term of 20 years, with two renewal options of 10 years each. The closing of the transaction is subject to customary due diligence and other closing conditions and is scheduled for October 2016.
Synalloy Corporation (Nasdaq:SYNL) is a growth oriented company that engages in a number of diverse business activities including the production of stainless steel pipe, fiberglass and steel storage tanks and specialty chemicals and the master distribution of seamless carbon pipe and tubing.
For more information about Synalloy Corporation, please visit our web site at www.synalloy.com.
