According to a Metal Management SEC filing, late last week Metal Management, as well as certain subsidiaries of the company and lending parties entered into a Fourth Amendment to Credit Agreement, which amends the Credit Agreement dated as of June 28, 2004, as amended.
The purpose of this amendment was to amend the definition of "Permitted Acquisitions" to include a proposed acquisition of privately held Morris Recycling, Inc. and its subsidiaries as a permitted acquisition, thereby leaving the permissible level of funds available for other acquisitions unchanged by this proposed acquisition. The amendment also sought to increase the permissible level of funds available for any single acquisition from $20 million to $30 million, and increase the amount the company is permitted to advance or loan from $2.5 million to $8 million.
The company has acquired an exclusive option to acquire substantially all of the assets of Morris Recycling.
Metal Management has also extended a short-term working capital loan in the amount of $5 million to Morris Recycling, which is secured by a second lien on the assets of Morris Recycling and certain other assets.
Morris Recycling is a full service scrap metal recycler serving Mississippi and portions of Arkansas, Tennessee and Alabama. Through its 10 operating facilities, Morris Recycling handles about 240,000 tons of ferrous and 32 million pounds of nonferrous metals each year.