IBC Advanced Alloys enters credit facilities

IBC Advanced Alloys, a leading beryllium and copper advanced alloys company, has announced new credit facilities of up to US$8,000,000 established pursuant to a credit and security agreement among Iron Horse Credit and certain of the company’s U.S. subsidiaries and an account sale and purchase agreement (ASPA) among Sallyport Commercial Finance and the subsidiaries. The Credit Facilities replace the Company’s existing revolving credit facility with the Bank of Montreal.

Pursuant to the Credit Agreement, Iron Horse Credit will provide the subsidiaries with a secured revolving credit facility of up to US$4,000,000. Pursuant to the ASPA, Sallyport Commercial Finance will provide the subsidiaries with up to US$4,000,000 in advance purchase funding based on the sale of the subsidiaries’ accounts receivable, with up to US$2,500,000 to be utilized in the near term, and the remaining US$1,500,000 to be utilized at the election of the subsidiaries. The subsidiaries will grant the lenders a senior security interest in their personal property assets, inventories, and accounts receivables, subject to the terms of an intercreditor agreement.

IBC intends to use the proceeds of the credit facilities to advance the consolidation and modernization of the company’s copper alloys manufacturing facility in Franklin, Indiana, and for working capital purposes.