Allegheny Tech SEC Filings

ATI Inc. (NYSE: ATI) has refinanced and expanded its senior secured credit facilities by executing a Second Amended & Restated Revolving Credit, Term Loan, Delayed Draw Term Loan and Security Agreement dated June 13, 2025.

The new five-year agreement matures on June 13, 2030 and consists of:

• $200 million term loan (fully funded at closing)
• $600 million asset-based revolving credit facility that includes (i) a $200 million letter-of-credit sub-facility and (ii) a $50 million swing-line
• Optional delayed-draw term loans of up to $100 million through June 13, 2026 (minimum $25 million per draw)
• The ability to request up to $300 million of incremental commitments at lender discretion

Borrowing availability under the revolver is determined by eligible accounts receivable and inventory, with an option to include certain machinery and equipment as collateral. Collateral is limited to working-capital assets and related proceeds; all obligations are guaranteed by domestic subsidiaries.

Pricing: SOFR-based borrowings carry spreads of 1.25%-1.75% (revolver) and 2.00% (term loans); base-rate borrowings carry spreads of 0.25%-0.75% (revolver) and 2.00% (term loans).

Covenants: If availability falls below the greater of 10% of maximum borrowing or $60 million—or if an event of default exists—the Loan Parties must maintain a minimum fixed-charge coverage ratio of 1.0x. Minimum liquidity must also be demonstrated during the 90-day window before maturity of several outstanding senior notes (2025-2031). The agreement contains customary affirmative, negative and change-of-control covenants and events of default; upon default, lenders may terminate commitments and accelerate all obligations.

Strategic Impact: The transaction extends ATI’s primary credit maturities to 2030, increases liquidity headroom, and adds structural flexibility through delayed-draw and incremental facilities, albeit at the cost of additional collateral pledges and covenant constraints.