Note 21 - Subsequent Events

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Subsequent Events [Text Block]

21. Subsequent Events:

On January 3, 2023, the Company purchased all of the outstanding shares of capital stock of Metal-Fab for a cash purchase price of $131.0 million, subject to a final working capital adjustment. Metal-Fab, headquartered in Wichita, Kansas, is a manufacturer of venting, micro air and clean air products for residential, commercial and industrial applications. The acquisition will be accounted for as a business combination and the assets and liabilities valued at fair market value. Metal-Fab will be included within the Company’s carbon flat-products segment in the Company’s first quarter of 2023 financial results.

In connection with the Metal-Fab acquisition, the Company entered into a Sixth Amendment to Third Amended and Restated Loan and Security Agreement, which increased the availability under our existing ABL Credit Facility from $475.0 million to $625.0 million. In addition, the amendment allows the Company to include the eligible assets of Metal-Fab in its borrowing base and updated the reference rate from LIBOR to Secured Overnight Financing Rate (SOFR). Additionally, the Company amended its fixed interest rate hedge from LIBOR to SOFR. This change to the interest rate hedge fixes the rate at 2.42%, down from 2.57%. The Company has the option to borrow under its revolver based on the agent’s base rate plus a premium ranging from 0.00% to 0.25% or SOFR plus a premium ranging from 1.25% to 2.75%.