On January 21, 2016, Universal Stainless & Alloy Products Inc. entered into a revolving credit, term loan and security agreement, by and among the company, the other borrowers party thereto, the guarantors party thereto from time to time, PNC Bank, National Association, as administrative agent and co-collateral agent, Bank of America, N.A., as co-collateral agent, and PNC Capital Markets LLC, as sole lead arranger and sole bookrunner. The new credit agreement provides for a senior secured revolving credit facility in an aggregate principal amount not to exceed $65.0 million and a senior secured term loan facility relating to a term loan in the amount of $30.0 million. The new credit agreement also provides for a letter of credit sub-facility not to exceed $10.0 million and a swing loan sub-facility not to exceed $6.5 million.

The facilities, which expire upon the earlier to occur of January 21, 2021 or the date that is 90 days prior to the scheduled maturity date of the new convertible notes, are collateralized by a first lien in substantially all of the assets of the company and its subsidiaries, except that no real property is collateral under the facilities other than the company's real property in North Jackson, Ohio. The company, Dunkirk Specialty Steel, LLC and North Jackson Specialty Steel, LLC, are co-borrowers under the facilities. The co-borrowers' respective obligations under the facilities will be guaranteed by any future direct and indirect domestic subsidiaries of any co-borrower.

Availability under the revolving credit facility is based on eligible accounts receivable and inventory, less reserves established by the agent in accordance with the terms of the new credit agreement and any outstanding swing loans and letters of credit issued under the facilities. At any time prior to January 21, 2020, the company may make up to two requests to increase the maximum aggregate principal amount of borrowings under the revolving credit facility. Each such request must involve an increase of at least $10.0 million, with the maximum aggregate principal amount of borrowings under the revolving credit facility not to exceed $90.0 million in any event.

The company is required to pay a commitment fee based on the daily unused portion of the revolving credit facility. To the extent not previously paid, any amounts owed under the revolving credit facility will become due and payable in full on the expiration date. With respect to the term loan, the co-borrowers collectively will pay quarterly installments of principal of approximately $1.1 million, plus accrued and unpaid interest, on the first day of each fiscal quarter beginning on April 1, 2016.

To the extent not previously paid, the Term Loan will become due and payable in full on the expiration date. In each case, an applicable margin based on the company's leverage ratio then in effect will be added to the interest rate elected by the company.