Insteel Industries is continuing to have discussions with its existing lenders as well as with other prospective providers of capital to meet a maturity on its credit facility that is expiring in March, noted Michael Gazmarian, Insteel's cfo and treasurer. "We are evaluating a number of alternatives," he said. "The alternatives could range from a longer-term restructuring of our existing facility to a refinancing to some combination of the two that combines both existing lenders, [and] existing financing with capital infusion." Gazmarian said the company was expected to reach a conclusion shortly.
Insteel originally completed its credit facility in early 2000. The facility comprised an $80 million term loan and a $60 million revolver. Bank of America agented this deal, put in place to support Insteel's acquisition of Florida Wire and Cable. But the company was not able to comply with certain covenants under that agreement. After many amendments, whereby the credit's maturity was shortened and then later extended in increments, Insteel currently has a $42 million revolver and two term loans totaling $40.2 million. In February 2003, Insteel received another amendment allowing the company to push out the expiration on this credit from October 2003 to March 31, 2004, according to company filings. Wachovia Bank, PNC Bank, and Branch Banking and Trust Company are the other lenders to the credit. A spokeswoman from B of A declined comment.