GlobeNewswire Inc | Mar 19, 2021 07:00AM EDT

March 19, 2021

BRIDGEVILLE, Pa., March 19, 2021 (GLOBE NEWSWIRE) -- Universal Stainless & Alloy Products, Inc. (Nasdaq: USAP) announced today that it has amended and restated its five-year $120million asset-based lending (ABL) credit agreement with PNC Bank, National Association. The new agreement includes a revolving credit facility of $105 million and increases the term loan facility to $15million. The Companys obligations under the amended and restated credit agreement continue to be collateralized by substantially all of the Companys accounts receivables, inventory, and fixed assets. The new credit agreement will expire in March 2026.

The amended and restated credit agreement supersedes the Companys prior ABL credit agreement with PNC Bank, which was scheduled to expire in August 2023.

In conjunction with this amendment, the Company repaid its $15 million seller note obligation, which was established in connection with the acquisition of the North Jackson, OH facility.

Dennis Oates, Chairman, President and Chief Executive Officer, commented: This agreement enhances our financial flexibility to support our current growth and long-term strategic initiatives. Market conditions have continued to improve throughout the year, and we are encouraged by both the positive momentum in market demand and the pace of our order entry activity. We continue to execute on our strategic initiatives aimed at expanding our product capabilities and continued cost reduction. Lastly, this amendment also provides interest expense savings, as the amended agreement provides for decreased interest rates compared to the North Jackson seller note obligation.

About Universal Stainless & Alloy Products, Inc.

Universal Stainless & Alloy Products, Inc., established in 1994 and headquartered in Bridgeville, PA, manufactures and markets semi-finished and finished specialty steels, including stainless steel, nickel alloys, tool steel and certain other alloyed steels. The Company's products are used in a variety of industries, including aerospace, power generation, oil and gas, and heavy equipment manufacturing. More information is available at www.univstainless.com.

Forward-Looking Information Safe Harbor

Except for historical information contained herein, the statements in this release are forward-looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Companys actual results in future periods to differ materially from forecasted results. Those risks include, among others, the Companys ability to maintain its relationships with its significant customers and market segments; the Companys response to competitive factors in its industry that may adversely affect the market for finished products manufactured by the Company or its customers; uncertainty regarding the progress of the return to service of the Boeing 737 MAX aircraft; the Companys ability to compete successfully with domestic and foreign producers of specialty steel products and products fashioned from alternative materials; changes in overall demand for the Companys products and the prices at which the Company is able to sell its products in the aerospace industry, from which a substantial amount of our sales is derived; the Companys ability to develop, commercialize, market and sell new applications and new products; the receipt, pricing and timing of future customer orders; the impact of changes in the Companys product mix on the Companys profitability; the Companys ability to maintain the availability of raw materials and operating supplies with acceptable pricing; the availability and pricing of electricity, natural gas and other sources of energy that the Company needs for the manufacturing of its products; risks related to property, plant and equipment, including the Companys reliance on the continuing operation of critical manufacturing equipment; the Companys success in timely concluding collective bargaining agreements and avoiding strikes or work stoppages; the Companys ability to attract and retain key personnel; the Companys ongoing requirement for continued compliance with laws and regulations, including applicable safety and environmental regulations; the ultimate outcome of the Companys current and future litigation matters; the Companys ability to meet its debt service requirements and to comply with applicable financial covenants; the ultimate outcome of the Companys PPP loan forgiveness application; risks associated with conducting business with suppliers and customers in foreign countries; public health issues, including COVID-19 and its uncertain impact on our facilities and operations and our customers and suppliers and the effectiveness of the Companys actions taken in response to these risks; risks related to acquisitions that the Company may make; the Companys ability to protect its information technology infrastructure against service interruptions, data corruption, cyber-based attacks or network security breaches; the impact on the Companys effective tax rates from changes in tax rules, regulations and interpretations in the United States and other countries where it does business; and the impact of various economic, credit and market risk uncertainties. Many of these factors are not within the Companys control and involve known and unknown risks and uncertainties that may cause the Companys actual results in future periods to be materially different from any future performance suggested herein. Any unfavorable change in the foregoing or other factors could have a material adverse effect on the Companys business, financial condition and results of operations. Further, the Company operates in an industry sector where securities values may be volatile and may be influenced by economic and other factors beyond the Companys control. Certain of these risks and other risks are described in the Companys filings with the SEC, including the Companys Annual Report on Form 10-K for the year ended December 31, 2020, copies of which are available from the SEC or may be obtained upon request from the Company.

CONTACTS: Dennis Oates June Filingeri Chairman, President President and CEO Comm-Partners LLC (412) 257-7609 (203) 972-0186