Algoma Steel Announces Upsizing of Asset-Based Revolving Credit Facility
Algoma Steel (NASDAQ: ASTL), a leading Canadian steel producer, has successfully increased its asset-based revolving credit facility (ABL Facility) from US$300 million to US$375 million. The US$75 million expansion is provided by Export Development Canada (EDC), which joins existing lenders Wells Fargo and BMO Capital Markets.
This strategic move is part of broader liquidity initiatives to strengthen Algoma's financial position amid challenging market conditions affected by tariffs. The ABL Facility maintains its first-priority lien on accounts receivable, inventory, and related assets of Algoma and its subsidiaries.
Algoma Steel (NASDAQ: ASTL), un importante produttore di acciaio canadese, ha aumentato con successo la sua facility di credito revolving basata su attivi (ABL Facility) da US$300 milioni a US$375 milioni. L'espansione di US$75 milioni è fornita da Export Development Canada (EDC), che si aggiunge ai finanziatori esistenti Wells Fargo e BMO Capital Markets.
Questa mossa strategica rientra in una serie più ampia di iniziative di liquidità per rafforzare la posizione finanziaria di Algoma in condizioni di mercato difficili influenzate dai dazi. L'ABL Facility mantiene la sua ipoteca di prima posizione su crediti verso clienti, inventario e beni correlati di Algoma e delle sue controllate.
Algoma Steel (NASDAQ: ASTL), destacado productor de acero canadiense, ha aumentado con éxito su facilidad de crédito revolvente basada en activos (ABL Facility) de US$300 millones a US$375 millones. La expansión de US$75 millones es proporcionada por Export Development Canada (EDC), que se une a los prestamistas existentes Wells Fargo y BMO Capital Markets.
Este movimiento estratégico forma parte de iniciativas de liquidez más amplias para fortalecer la posición financiera de Algoma en medio de condiciones de mercado desafiantes afectadas por aranceles. La ABL Facility mantiene su derecho de prenda de prioridad sobre cuentas por cobrar, inventario y activos relacionados de Algoma y sus subsidiarias.
Algoma Steel (NASDAQ: ASTL), 캐나다의 선도적인 steel 생산 업체가 актив 기반 순환 신용 한도(ABL Facility)를 미화 3억 달러에서 3억 7500만 달러로 성공적으로 증액했습니다. 미화 7,500만 달러 확장은 Export Development Canada(EDC)가 제공하며 기존 대주 Wells Fargo와 BMO Capital Markets에 합류합니다.
이 전략적 조치는 무역 관세의 영향으로 어려운 시장 상황 속에서 Algoma의 재무 위치를 강화하기 위한 보다 광범위한 유동성 이니셔티브의 일부입니다. ABL Facility는 Algoma와 그 자회사의 매출채권, 재고 및 관련 자산에 대한 최우선 권리 담보를 유지합니다.
Algoma Steel (NASDAQ: ASTL), un important producteur d’acier canadien, a réussi à augmenter sa facilité de crédit renouvelable adossée à des actifs (ABL Facility) de US$300 millions à US$375 millions. L’expansion de US$75 millions est fournie par Export Development Canada (EDC), qui rejoint les prêteurs existants Wells Fargo et BMO Capital Markets.
Cette démarche stratégique s’inscrit dans le cadre d’initiatives de liquidité plus larges visant à renforcer la position financière d’Algoma dans un contexte économique difficile, affecté par les tarifs douaniers. L’ABL Facility conserve son privilège de premier rang sur les comptes clients, l’inventaire et les actifs connexes d’Algoma et de ses filiales.
Algoma Steel (NASDAQ: ASTL), ein führender kanadischer Stahlhersteller, hat seine auf Vermögenswerten basierende revolvierende Kreditfazilität (ABL Facility) erfolgreich von US$300 Millionen auf US$375 Millionen erhöht. Die US$75 Millionen-Erweiterung stammt von Export Development Canada (EDC) und ergänzt die bestehenden Gläubiger Wells Fargo und BMO Capital Markets.
Diese strategische Maßnahme ist Teil breiterer Liquiditätsinitiativen zur Stärkung der finanziellen Position von Algoma in Marktbedingungen, die durch Zölle beeinflusst sind. Die ABL Facility behält ihren Vorrangpfandrecht an Forderungen, Lagerbestand und verwandten Vermögenswerten von Algoma und seinen Tochtergesellschaften.
Algoma Steel (NASDAQ: ASTL)، المنتج الرائد في مجال الصلب في كندا، قد زاد بنجاح تسهيل الائتمان المتجدد القائم على الأصول (ABL Facility) من 300 مليون دولار إلى 375 مليون دولار. التوسعة 75 مليون دولار مقدمة من Export Development Canada (EDC)، التي تنضم إلى الدائنين الحاليين Wells Fargo وBMO Capital Markets.
هذه الخطوة الاستراتيجية جزء من مبادرات واسعة للسيولة الماليـة لتعزيز الوضع المالي لـAlgoma في ظل ظروف السوق التـي تتأثر بالتعريفات الجمركية. يظل تسهيل ABL متمتعاً برهن من الدرجة الأولى على الحسابات المدينة والمخزون والأصول ذات الصلة لـAlgoma وشركاتها التابعة.
Algoma Steel (NASDAQ: ASTL)，加拿大领先的钢铁生产商，已成功将其以资产为基础的循环信贷设施（ABL Facility）从3亿美元增至3.75亿美元。这7500万美元的扩张由加拿大出口发展署（EDC）提供，并加入现有的 Wells Fargo 和 BMO Capital Markets 等放款人。
此次战略举措是更广泛的流动性举措的一部分，旨在在受关税影响的市场条件下增强 Algoma 的财务状况。ABL Facility 继续对 Algoma 及其子公司的应收账款、存货及相关资产享有第一优先留置权。
- Increased credit facility by US$75 million to US$375 million total
- Addition of Export Development Canada (EDC) as a new lender shows confidence in company
- Enhanced financial flexibility to support operations and strategic priorities
- Maintains first-priority lien security structure
- Company facing challenging market conditions due to tariffs
- Seeking additional liquidity suggests potential cash flow concerns
SAULT STE. MARIE, Ontario, Sept. 18, 2025 (GLOBE NEWSWIRE) -- Algoma Steel Group Inc. (“Algoma” or the “Company”) (NASDAQ: ASTL; TSX: ASTL), a leading Canadian producer of hot and cold rolled steel sheet and plate products, today announced that it has amended its Amended and Restated Credit Agreement (as amended, the “Credit Agreement”) to increase the aggregate commitments under its asset-based revolving credit facility (“ABL Facility”) from US
The incremental US
“Despite the challenging market conditions brought on by tariffs, this upsizing of our ABL Facility, and the addition of EDC to our banking group, provides Algoma with enhanced financial flexibility to support our operations and strategic priorities,” said Rajat Marwah, Chief Financial Officer of Algoma. “The continued support of our lenders, Wells Fargo and BMO Capital Markets, and the participation of EDC reflect confidence in Algoma’s transformation to Electric Arc Furnace steelmaking and our long-term competitiveness as a sustainable Canadian steel producer.”
The ABL Facility will continue to be secured by a first-priority lien on accounts receivable, inventory, and related assets of Algoma and its subsidiaries, and remains subject to the terms of the Credit Agreement.
About Algoma Steel Group Inc.
Based in Sault Ste. Marie, Ontario, Canada, Algoma is a fully integrated producer of hot and cold rolled steel products including sheet and plate. Driven by a purpose to build better lives and a greener future, Algoma is positioned to deliver responsive, customer-driven product solutions to applications in the automotive, construction, energy, defense, and manufacturing sectors. Algoma is a key supplier of steel products to customers in North America and is the only producer of discrete plate products in Canada. Its state-of-the-art Direct Strip Production Complex (“DSPC”) is one of the lowest-cost producers of hot rolled sheet steel (HRC) in North America.
Algoma is on a transformation journey, modernizing its plate mill and adopting electric arc technology that builds on the strong principles of recycling and environmental stewardship to significantly lower carbon emissions. Today Algoma is investing in its people and processes, working safely, as a team to become one of North America's leading producers of green steel.
As a founding industry in their community, Algoma is drawing on the best of its rich steelmaking tradition to deliver greater value, offering North America the comfort of a secure steel supply and a sustainable future.
Forward-Looking Statements
This news release contains “forward-looking statements” under applicable Canadian securities laws and “forward-looking information” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to future events or future performance and reflect the Company’s current expectations and assumptions. Forward-looking statements can often be identified by words such as “anticipate,” “expect,” “intend,” “plan,” “believe,” “seek,” “estimate,” “target,” “project,” “may,” “should,” “will,” “forecast,” “outlook,” “potential,” or other similar expressions. In particular, this release contains forward-looking information regarding the expected benefits of the upsizing of the ABL Facility, the anticipated impact of Algoma’s Electric Arc Furnace (“EAF”) project and its plate mill modernization project, resulting reduction in carbon emissions following completion of the EAF project, Algoma’s future as a leading producer of green steel, transformation journey, ability to deliver greater and long-term value, and Algoma’s ability to offer North America a secure steel supply and a sustainable future, and investment in its people, and processes.
These forward-looking statements are subject to a number of known and unknown risks, uncertainties, and assumptions that could cause actual results or events to differ materially from current expectations. Such risks and uncertainties include, but are not limited to, the Company’s ability to enter into definitive documentation on the terms described or at all; the Company’s ability to meet the conditions precedent to funding; potential changes in government policy; general economic and market conditions; ongoing trade actions and tariffs; the risks described in Algoma’s filings with the U.S. Securities and Exchange Commission (available at www.sec.gov) and Canadian securities regulators (available under the Company’s SEDAR+ profile at www.sedarplus.com); and other factors that may be beyond the Company’s control.
Readers are cautioned not to place undue reliance on forward-looking statements. Algoma undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.
For more information, please contact:
Michael Moraca
Vice President – Corporate Development & Treasurer
Algoma Steel Group Inc.
Phone: 705.945.3300
E-mail: IR@algoma.com
FAQ
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