A bank meeting is set for today on a new $250 million facility for Tube City IMS Corp. Bear Stearns and CIBC World Markets are leading the credit, which consists of a five-year, $75 million revolver and a five-year, $175 million term loan. Pricing could not be determined. The company will use the term loan, along with proceeds from an offering of IPS securities, to refinance existing debt, which includes a $265 million first-lien term loan and a $50 million second-lien term loan. Wellspring Capital Management is the sponsor.
Based in Pennsylvania, Tube City provides outsourced services to the global steel industry. It operates on-site at more than 60 steel mills in 26 states, Canada and Eastern Europe. The company was formed in October 2004 through Wellspring's acquisition of International Mill Service and then the December acquisition of Tube City. Wellspring officials did not return calls.