Metallus (NYSE: MTUS) adds $300M asset-based credit line to 2031
Rhea-AI Filing Summary
Metallus Inc. entered into a Fifth Amended and Restated Credit Agreement providing a new $300 million asset-based revolving credit facility with a syndicate of lenders led by JPMorgan Chase. This facility is secured by substantially all personal property of Metallus and key domestic subsidiaries and is guaranteed by those subsidiaries.
The facility includes a $15 million letter-of-credit sublimit and a $40 million swingline loan sublimit, with options to increase lender commitments by up to $200 million plus a separate $30 million first-in, last-out tranche if conditions are met. Borrowing availability is tied to a borrowing base of eligible receivables, inventory, and equipment, and the facility carries variable interest based on either an Alternate Base Rate or Adjusted Term SOFR plus a margin, plus a 0.25% fee on unused commitments.
The credit facility matures on June 30, 2031, and requires mandatory prepayments from certain asset sales or capital raises before then. As of June 30, 2026, Metallus had $5.3 million outstanding in letters of credit under this facility, which is intended to support working capital, capital spending, permitted acquisitions, and general corporate purposes.
Positive
- None.
Negative
- None.
Insights
Metallus locks in long-dated, asset-based liquidity with flexible expansion options.
The company has secured a $300 million asset-based revolver maturing on June 30, 2031, backed by receivables, inventory, and equipment. Covenants restrict additional debt, liens, asset sales, and distributions, which is typical for this type of secured facility.
Metallus can request up to $200 million in incremental commitments plus a $30 million FILO tranche, subject to conditions, giving room to scale liquidity if needed. As of June 30, 2026, only $5.3 million was used via letters of credit, suggesting substantial undrawn capacity.
8-K Event Classification
Key Figures
Key Terms
asset-based revolving credit facility financial
swingline loans financial
Alternate Base Rate financial
Adjusted Term SOFR Rate financial
fixed charge coverage ratio financial
first-in, last-out tranche financial
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
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| Item 1.01 | Entry into a Material Definitive Agreement. |
On June 30, 2026, Metallus Inc. (the “Company”), as borrower, and certain domestic subsidiaries of the Company, as subsidiary guarantors (the “Subsidiary Guarantors”), entered into a Fifth Amended and Restated Credit Agreement (the “Amended Credit Agreement”), with JPMorgan Chase Bank, N.A., as administrative agent (the “Administrative Agent”), and the lenders party thereto (collectively, the “Lenders”), which further amends and restates the Company’s existing secured Fourth Amended and Restated Credit Agreement, dated as of September 30, 2022.
The Amended Credit Agreement provides for a $300.0 million asset-based revolving credit facility (the “Credit Facility”), including a $15.0 million sublimit for the issuance of commercial and standby letters of credit and a $40.0 million sublimit for swingline loans. Pursuant to the terms of the Amended Credit Agreement, the Company is entitled, on up to four occasions and subject to the satisfaction of certain conditions, to request increases in the commitments under the Amended Credit Agreement in the aggregate principal amount of up to $200.0 million, to the extent that existing or new lenders agree to provide such additional commitments. In addition to and independent of any increase described in the preceding sentence, the Company is entitled, subject to the satisfaction of certain conditions, to request a separate “first-in, last-out” tranche (the “Incremental FILO Tranche”) in an aggregate principal amount of up to $30.0 million with a separate borrowing base and interest rate margins, in each case, to be agreed upon among the Company, the Administrative Agent and the Lenders providing the Incremental FILO Tranche.
The availability of borrowings under the Credit Facility is subject to a borrowing base calculation based upon a valuation of the eligible accounts receivable, inventory and machinery and equipment of the Company and the Subsidiary Guarantors, each multiplied by an applicable advance rate. The availability of borrowings may be further modified by reserves established from time to time by the Administrative Agent in its permitted discretion.
The interest rate per annum applicable to loans under the Credit Facility will be, at the Company’s option, equal to either (i) the Alternate Base Rate (as defined in the Amended Credit Agreement) plus the applicable margin or (ii) the Adjusted Term SOFR Rate (as defined in the Amended Credit Agreement) plus the applicable margin. The applicable margin will be determined by a pricing grid based on the Company’s average quarterly availability. The Alternate Base Rate is subject to a 1.00% floor, and the Adjusted Term SOFR Rate is subject to 0.00% floor. In addition, the Company will pay a 0.25% per annum commitment fee on the daily unused amount of the Credit Facility.
As of June 30, 2026, $5.3 million was outstanding under the Credit Facility in the form of letters of credit. The proceeds of the Credit Facility will be used to finance working capital, capital expenditures, certain permitted acquisitions and other general corporate purposes. All of the indebtedness under the Credit Facility is guaranteed by the Company’s material domestic subsidiaries, as well as any other domestic subsidiary that the Company elects to make a party to the Amended Credit Agreement, and is secured by substantially all of the personal property of the Company and the Subsidiary Guarantors.
The Credit Facility matures on June 30, 2031. Prior to the maturity date, amounts outstanding are required to be repaid (without reduction of the commitments thereunder) from mandatory prepayment events from the proceeds of certain asset sales, equity or debt issuances or casualty events.
The Amended Credit Agreement contains certain customary covenants, including covenants that limit the ability of the Company and its subsidiaries to, among other things, (i) incur or suffer to exist certain liens, (ii) make investments, (iii) incur or guaranty additional indebtedness, (iv) enter into consolidations, mergers, acquisitions, sale-leaseback transactions and sales of assets, (v) make distributions and other restricted payments, (vi) change the nature of its business, (vii) engage in transactions with affiliates and (viii) enter into restrictive agreements, including agreements that restrict the ability to incur liens or make distributions.
In addition, the Amended Credit Agreement requires the Company to maintain a minimum specified fixed charge coverage ratio on a springing basis if minimum availability requirements as specified in the Amended Credit Agreement are not maintained.
The Amended Credit Agreement contains certain customary events of default. If any event of default occurs and is continuing, the Lenders would be entitled to take various actions, including the acceleration of amounts due under the Amended Credit Agreement, and exercise other rights and remedies.
The Lenders and the agents (and each of their respective subsidiaries or affiliates) under the Amended Credit Agreement have in the past provided, and may in the future provide, investment banking, cash management, underwriting, lending, commercial banking, trust, leasing services, foreign exchange and other advisory services to, or engage in transactions with, the Company and its subsidiaries or affiliates. These parties have received, and may in the future receive, customary compensation from the Company and its subsidiaries or affiliates, for such services.
The foregoing description of the Amended Credit Agreement does not purport to be complete, and is qualified in its entirety by reference to the full text of the Amended Credit Agreement, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.
| Item 2.03 | Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
The information set forth under Item 1.01 above is hereby incorporated into this Item 2.03 by reference.
| Item 9.01 | Financial Statements and Exhibits. |
| (d) | Exhibits. |
The following exhibit is filed with this Current Report on Form 8-K:
| Exhibit No. |
Exhibit Description | |
| 10.1* | Fifth Amended and Restated Credit Agreement, dated as of June 30, 2026, by and among Metallus Inc., the other loan parties and lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |
| * | Certain schedules and exhibits have been omitted pursuant to Regulation S-K, Item 601(a)(5). The Company will furnish a copy of any omitted schedules or exhibits to the Securities and Exchange Commission upon request. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| METALLUS INC. | ||||||
| Date: July 1, 2026 | By: | /s/ John M. Zaranec III | ||||
| John M. Zaranec III | ||||||
| Executive Vice President and Chief Financial Officer | ||||||