Industrial Services of America, Inc. (NASDAQ: IDSA), a company that buys, processes and markets ferrous and non-ferrous metals and other recyclable commodities, and offers waste management programs and equipment to commercial customers, today announced that it has executed a new $1,000,000 revolving line of credit for its WESSCO operating subsidiary. WESSCO, which stands for Waste Equipment Sales and Services Company, owns and operates a fleet of compactors, balers and other waste handling equipment, and leases this equipment under long-term agreements to commercial and industrial customers. The Bank of Kentucky, which funded the initial line of credit of WESSCO in October 2013, has agreed to fund the revolver to provide additional support for WESSCO's growth strategy. WESSCO may draw up to $1,000,000 over a 12-month period to fund purchases of new waste handling equipment. "With the tremendous growth opportunity we see in the equipment rental business, we are thankful to have a supportive partner like The Bank of Kentucky," said Sean Garber, President of ISA. "As a result of Bank of Kentucky's confidence in WESSCO, we can continue to grow this business aggressively, and we have every intention of putting the full $1 million to use," Mr. Garber continued. The $1,000,000 revolving line of credit has a six-year term and bears interest at an annual rate of LIBOR plus 3.50%. At the end of the first year, the revolver will expire and WESSCO will begin to repay the outstanding loan balance in 60 equal monthly payments. WESSCO may prepay the loan at any time, in whole or in part, without penalty. The loan carries a fixed charge coverage ratio of 1.15:1.00 which will be measured annually. "Fixed Charge Coverage Ratio" will be calculated as the sum of WESSCO's earnings before interest, taxes, depreciation, rent, and interest expense, less distributions and unfunded capital expenditures, divided by the sum of the current portion of long term debt due for the period, interest expense and rent expense. The new revolving credit facility replaces the initial revolving line of credit that expired in October 2014, converting into a five-year term obligation in the amount of $596,627.
ISA's SEC filings are available for review at the Securities and Exchange Commission web site at http://www.sec.gov/edgar/searchedgar/companysearch.html.About ISA Headquartered in Louisville, Kentucky, Industrial Services of America, Inc., is a publicly traded company that buys, processes and markets ferrous and non-ferrous metals and other recyclable commodities, and offers waste management programs and equipment to commercial customers. More information about ISA is available at www.isa-inc.com. This news release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ from predicted results. Specific risks include fluctuations in the price of recycled materials, varying demand for waste managing systems, equipment and services, competitive pressures in waste managing systems and equipment, competitive pressures in the waste managing business, and loss of customers. Further information on factors that could affect ISA's results is detailed in ISA's filings with the Securities and Exchange Commission. ISA undertakes no obligation to publicly release the results of any revisions to the forward-looking statements.