Accuride has announced it has entered into an asset-based loan (ABL) incremental commitment agreement, to which lenders agreed to provide $25 million in aggregate incremental commitments under the company’s existing secured ABL credit agreement, dated July 29, 2010. Accuride says the new agreement materially improves the company’s total liquidity.
“We are pleased to complete the expansion of our existing ABL agreement, which paves the way for the successful execution of our business plan’s $75 million of planned capital expenditures in 2012,” says Greg Risch, Accuride vice president and interim CFO. “These investments will enable us to strengthen product availability and quality at our Gunite business, and increase aluminum wheel production capacity in response to strong industry demand.
“We anticipate that our revised capital structure will provide us with greater flexibility to serve our customers during the industry upturn that is underway in North America. In addition, we are negotiating new equipment lease agreements that we expect will further enhance liquidity in 2012.”
