Key Highlights

  • $300 million asset‑based revolving credit facility established, maturing June 30 2031.
  • Sub‑limits include $15 million for letters of credit and $40 million for swingline loans.
  • Facility can be expanded by up to $200 million, with an optional $30 million first‑in‑last‑out tranche.

Metallus Inc. (NYSE: MTUS) announced on June 30 2026 that it has executed a Fifth Amended and Restated Credit Agreement, establishing a $300 million asset‑based revolving credit facility. The agreement, administered by JPMorgan Chase Bank, N.A. Is secured by the Company’s assets and those of its domestic subsidiaries and remains effective until June 30 2031.

Facility Structure

The facility provides a primary pool of $300 million that can be drawn against eligible accounts receivable, inventory and equipment. Borrowing capacity is determined by advance rates applied to these collateral categories, and the administrative agent may impose reserves that adjust the amount available for borrowing.

Sub‑Limits and Usage

Within the broader facility, a $15 million sub‑limit is designated for commercial and standby letters of credit, while a separate $40 million sub‑limit supports swingline loan transactions. As of the reporting date, $5.3 million had been drawn to fund letters of credit.

Flexibility for Additional Funding

The agreement allows Metallus to request up to four incremental increases, which together could add $200 million to the facility’s principal commitments, subject to lender approval. Additionally, the Company may seek a distinct “first‑in‑last‑out” tranche of up to $30 million, which will be governed by its own borrowing base and interest‑margin provisions.

Pricing and Fees

Interest on the revolving loans will be calculated using either the Alternate Base Rate plus a margin or the Adjusted Term SOFR Rate plus a margin, at the Company’s election. The Alternate Base Rate incorporates a 1.00% floor, and the Adjusted Term SOFR Rate includes a 0.00% floor. A commitment fee of 0.25% per annum applies to the portion of the facility that remains undrawn each day.

Covenant Overview

Standard covenants restrict Metallus and its subsidiaries from creating additional liens, initiating new capital projects, issuing further indebtedness, or completing mergers, acquisitions and asset disposals without lender consent. The agreement also requires a minimum fixed‑charge coverage ratio that becomes operative when certain availability thresholds are not met.

Maturity and Repayment

The credit facility is scheduled to mature on June 30 2031. By that date, any outstanding balances are expected to be repaid using proceeds from asset disposals, equity or debt issuances, or other defined events, without diminishing the total commitment size.

Industry Context

Asset‑based lending continues to be a key financing channel for companies with substantial working‑capital assets, particularly in manufacturing and distribution sectors. Metallus’s new facility reflects broader market trends where lenders are offering flexible, collateral‑driven structures that support both ongoing operations and strategic growth initiatives. By securing this facility, Metallus positions itself to fund capital expenditures, pursue acquisition opportunities, and maintain liquidity in a competitive environment.

A copy of the amendment.1 and is publicly accessible for review.

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.