- IBC Advanced Alloys (IB) has entered into credit facilities with Iron Horse Credit and Sallyport Commercial Finance worth US$8 million
- The company intends to use the proceeds to consolidate and modernize its copper alloys manufacturing facility in Franklin, Indiana
- The credit facilities replace the company’s existing revolving credit facility with the Bank of Montreal
- IBC is a beryllium and copper advanced alloys company serving a variety of sectors
- IBC Advanced Alloys (IB) closed down 4 per cent trading at $0.24 per share
IBC Advanced Alloys (IB) has entered into credit facilities with Iron Horse Credit and Sallyport Commercial Finance worth US$8 million.
Pursuant to the credit agreement with Iron Horse, the latter will provide certain U.S. IBC subsidiaries with a secured revolving credit facility of up to US$4 million.
The credit agreement will accrue interest at a rate of 1.166 per cent per month, compounded and payable monthly, with a maturity date of 12 months.
Pursuant to the account sale and purchase agreement with Sallyport Commercial Finance, the latter will provide IBC’s subsidiaries with up to US$4 million in advance purchase funding based on the sale of their accounts receivable.
The account sale and purchase agreement will accrue interest at prime plus 2 per cent per year compounded and payable monthly. The agreement has a term of 12 months and is subject to a factoring fee of up to 1 per cent of the account’s face value.
The subsidiaries will grant the lenders a senior security interest in their personal property assets, inventories and accounts receivable subject to the terms of an inter-creditor agreement.
IBC intends to use the proceeds to consolidate and modernize its copper alloys manufacturing facility in Franklin, Indiana and for working capital purposes.
The company’s subsidiaries will pay fees totalling US$85,000 at close plus an annual facility fee of US$60,000.
The credit facilities replace IBC’s existing revolving credit facility with the Bank of Montreal.
IBC is a beryllium and copper advanced alloys company serving the defence, aerospace, automotive, telecommunications and precision manufacturing sectors.
IBC Advanced Alloys (IB) closed down 4 per cent trading at $0.24 per share.
