Olympic Steel extends credit facility to 2030

Published 18/04/2025, 19:36
Olympic Steel extends credit facility to 2030

In a recent move, Olympic Steel Inc. (NASDAQ:ZEUS), a leading metals service center with a market capitalization of $341 million and annual revenue of $1.94 billion, announced the extension of its credit facility’s maturity date to April 17, 2030. This extension was formalized through the Ninth Amendment to the Third Amended and Restated Loan and Security Agreement, as disclosed in a filing with the Securities and Exchange Commission.

The amendment, agreed upon on Wednesday, includes Olympic Steel and its wholly-owned domestic subsidiaries as borrowers and was facilitated with Bank of America, N.A. acting as the agent for the lenders involved. The original agreement, established on December 8, 2017, has been modified several times, with this Ninth Amendment marking the latest adjustment.

The extension of the credit facility is a significant financial development for Olympic Steel, providing the company with a longer horizon to manage its financial obligations. According to InvestingPro data, the company maintains a healthy current ratio of 4.38, indicating strong ability to meet short-term obligations. The details of the Ninth Amendment were attached as Exhibit 10.1 to the company’s 8-K filing, which serves as the official record of this corporate action.

The extension of the maturity date is a strategic move that could offer Olympic Steel more flexibility in its financial planning and operations. It also reflects the lenders’ continued confidence in the company’s performance and creditworthiness.

Olympic Steel, headquartered in Highland Hills, Ohio, operates within the metals service centers & offices industry, under the SIC code 5051. This recent financial arrangement is part of the company’s ongoing efforts to maintain a robust financial structure that supports its business activities.

The information regarding this financial development is based on the statements provided in the company’s SEC filing.

In other recent news, Olympic Steel reported its fourth-quarter 2024 earnings, which fell short of analyst expectations. The company posted an earnings per share (EPS) of $0.13, missing the projected $0.17, and revenue of $418.78 million, below the anticipated $462.6 million. Despite these misses, KeyBanc Capital Markets raised its price target for Olympic Steel to $43, maintaining an Overweight rating, suggesting confidence in the company’s financial outlook. The firm noted that Olympic Steel’s liquidity is expected to support its mergers and acquisitions strategy, with a focus on expanding product offerings and market presence. In November 2024, Olympic Steel completed the strategic acquisition of Metalworks for $80 million, aiming to enhance its product range in sectors like solar components and service station canopies. This acquisition aligns with the company’s diversification strategy, which includes investments in automation and capacity expansion. Olympic Steel’s total sales for 2024 were reported at $1.9 billion, with a net income of $23 million. As the company navigates industry challenges, including declining prices in key materials, it remains optimistic about long-term growth, supported by ongoing strategic investments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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