IRVING, Texas, Jan. 3, 2012 /PRNewswire/ -- Commercial Metals Company (NYSE: CMC) announced today that it entered into amended Credit and Receivables Purchase Agreements. The amended Credit Agreement provides access to $300 million for a period of 5 years, with an option to increase by an additional $100 million. In addition to improved funded pricing, the commitment fee under the Credit Agreement provides annual savings in excess of $1.3 million.
The Receivables Purchase Agreement was amended to increase the funding capacity to $200 million which, when combined with the amended Credit agreement, maintains the Company's total borrowing capacity at $500 million. The Receivables Purchase Agreement term was also extended for a period of 3 years. CMC added an additional financial institution as a purchaser to provide additional liquidity at cost-effective funded pricing.
"We value the strong relationships we have with our bank group and appreciate their support and confidence in the Company by providing a committed Credit Agreement for 5 years. This cost-effective access to a total of $500 million will provide Commercial Metals Company with the liquidity to grow our business over the long term," commented Barbara Smith, Senior Vice President and Chief Financial Officer.
About Commercial Metals CompanyCommercial Metals Company and subsidiaries manufacture, recycle and market steel and metal products, related materials and services through a network including steel minimills, steel fabrication and processing plants, construction-related product warehouses, a copper tube mill, metal recycling facilities and marketing and distribution offices in
the United States and in strategic international markets.
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