TriMas Corp. entered into a new accounts receivable facility with Wachovia Bank. The new facility, which has a three-year term, provides committed funding of up to $75 million.
The new accounts receivable facility provides a source of liquidity for the TriMas at a cost of funds equal to three-month Libor (currently approximately 0.25%) plus a spread ranging from 2.75% to 3.50% (currently 3.25%) on amounts drawn under the facility.
This facility replaces the firm’s existing $55 million 364-day accounts receivables securitization facility.
“This new agreement reflects our continued efforts to ensure that TriMas has adequate liquidity, and together with the Company’s recently amended bank credit facility and senior secured notes offering, will improve our financial flexibility,” said Mark Zeffiro, TriMas chief financial officer. “In addition to increasing the level of committed funding from $55 million to $75 million, we will benefit from improved pricing (currently 125 basis points lower than the existing facility) and the reduction of refinancing risk resulting from a three-year commitment. The recent actions taken to improve our capital structure will allow us to support our planned productivity and growth initiatives, and accelerate the positive changes taking place within our organization.”