Metals manufacturer Worthington Industries has increased its $235 million revolver to $435 million after approaching its bank group for an increase in commitments. The line will "provide a backstop for our short-term credit facility, to continue the company's growth and for working capital increases," said Allison Sanders, director of investor relations at Worthington. A banker familiar with the company said Worthington could be planning to use the availability in the revolver for future acquisitions. However, he noted "there is nothing yet on the table."
Sanders explained that the company's excellent financial situation was a driver in the timing. Worthington recently reported record quarterly and yearly sales, with a 33% increase for the second quarter and 7% for 2004. The banker concurred that the current strength of the steel sector and the company's triple-B credit rating allowed the company to grow its facility.
The facility matures in 2007 and is led by Scotia Capital and PNC Bank. Both Scotia and PNC led Worthington's previous facility. Sanders declined comment on pricing.