Metallus Inc. 8-K

What Happened

• Metallus Inc. announced on June 30, 2026 that it and certain domestic subsidiaries entered into a Fifth Amended and Restated Credit Agreement with JPMorgan Chase Bank, N.A. as administrative agent and the lenders party thereto. The agreement replaces the company’s prior credit agreement dated September 30, 2022 and establishes a $300.0 million asset‑based revolving credit facility to finance working capital, capital expenditures, permitted acquisitions and other general corporate purposes. The facility matures June 30, 2031.

Key Details

• Credit facility size: $300.0 million revolving credit; $15.0 million sublimit for letters of credit; $40.0 million sublimit for swingline loans.
• Potential increases: Company may request up to $200.0 million of additional commitments (in up to four requests) if lenders agree; separate incremental “FILO” tranche available up to $30.0 million (terms to be agreed).
• Pricing & fees: Borrowings priced at either Alternate Base Rate + margin (1.00% floor on Alternate Base Rate) or Adjusted Term SOFR + margin (0.00% floor); 0.25% per annum fee on unused commitments. Margin is set by a pricing grid tied to average quarterly availability.
• Collateral & guarantees: All obligations are guaranteed by material domestic subsidiaries and secured by substantially all personal property of the borrower and guarantors; borrowings limited by a borrowing base calculated from eligible accounts receivable, inventory and machinery & equipment, and subject to agent reserves. As of June 30, 2026, $5.3 million was outstanding under the facility in the form of letters of credit.
• Covenants & default: The agreement includes customary covenants limiting liens, investments, additional indebtedness, certain transactions (mergers, asset sales, sale‑leasebacks), distributions, affiliate transactions and other restrictions. A springing fixed charge coverage ratio applies if specified availability levels are not maintained. Events of default allow lenders to accelerate loans and exercise remedies.

Why It Matters

• This amended credit facility is the company’s primary secured liquidity source for operations, capex and permitted deals through mid‑2031. The size, sublimits and expansion options give Metallus flexibility to fund growth or absorb working capital needs, but the borrowing base, agent reserves and covenants limit how much of that capacity is available at any time. Investors should note the secured nature of the debt, the subsidiary guarantees, the covenant package (including a springing coverage test) and the potential for mandatory prepayments tied to asset sales, equity/debt issuances or casualty events—factors that affect financial flexibility and capital allocation.