Steel Partners Holdings Amends and Extends Credit Agreement
NEW YORK, December 29, 2021– (BUSINESS WIRE) – Steel Partners Holdings LP (NYSE: SPLP), a diversified global holding company, today announced that it has amended and extended its credit agreement with a syndicate of banks led by PNC Bank, National Association. The new five-year, $ 600 million revolving credit facility covers virtually all SPLP entities except Steel Partners’ WebBank subsidiary. The credit facility includes:
$ 50 million sub-facility for swing line loans,
$ 50 million sub-facility for standby letters of credit, and
$ 75 million currency sub-limit (available in euros and pounds sterling).
In addition, Steel Partners is permitted, under certain circumstances, to increase the facility by at least $ 300 million.
“The proceeds of the credit facility will be used for general corporate purposes, including working capital requirements and potential future acquisitions and investments,” said Warren Lichtenstein, executive chairman of Steel Partners. “Extending our credit agreement for an additional five years gives us increased liquidity and flexibility, as we continue to develop Steel Partners and add value for all stakeholders. “
About Steel Partners Holdings LP
Steel Partners Holdings LP (www.steelpartners.com) is a diversified global holding company which owns and operates businesses and holds significant interests in leading companies in a variety of industries including Diversified Industrials, Energy, Defense , supply chain management and logistics, banking and youth sports.
This press release contains certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the expectations and SPLP’s current projections regarding its future results, performance, outlook and opportunities. SPLP identifies these forward-looking statements by using words such as “may”, “should”, “expect”, “hope”, “anticipate”, “believe”, “intend”, “plan”, “Estimate”, “” and similar expressions. These forward-looking statements are based on information currently available to the Company and are subject to risks, uncertainties and other factors which could cause its actual results, , its outlook or opportunities differ materially from those expressed or implied by such forward-looking statements. ” operations, financial condition and cash flows of the Company; material weaknesses in the Company’s internal control over financial reporting; decline in the price of crude oil; fluctuations in oil prices thirds; significant cash funding requirements that may be required in the future as a result of the sponsorship by certain subsidiaries of the Company of defined benefit pension plans; significant costs, including remediation costs, resulting from compliance with environmental laws or failure to comply with other extensive regulations, including banking regulations; the impact of climate change legislation or regulations restricting greenhouse gas emissions on the costs and demand for the Company’s services; the impacts on the Company’s liquidity or financial position following legislative and regulatory measures; the Company’s ability to maintain sufficient operating or financing cash flows to meet its obligations under its senior credit facility; the risks associated with the Company’s commercial acquisition strategy; losses incurred in the Company’s investment portfolio; the impact of interest rates on the Company’s investments, such as increasing interest rates or the use of an SOFR-based interest rate in the Company’s credit facilities; reliance on intellectual property owned by others and the Company’s ability to protect its own intellectual property and licenses; risks associated with conducting operations outside of the United States, including changes in business policies and the costs or limitations of acquiring materials and products used in the Company’s operations; the risk of litigation; the impacts on the Company’s WebBank activity due to the highly regulated environment in which it operates, as well as the risk of litigation regarding the processing of PPP loans and the risk that the SBA will not fund all or part of the guarantees of PPP loan; the potentially disruptive impacts of economic downturns in various sectors; loss of customers by the Company’s subsidiaries due to non-fulfillment of long-term contracts with customers; risks relating to key members of the management and management team of the Company; the Company’s agreement to indemnify its manager under its management contract, which may encourage the manager to take unnecessary risks; the risks associated with the ordinary and preferred units of the Company, including potential price reductions for current unitholders if additional ordinary or preferred units are issued, as well as the lack of an active market for the units of the Company due to transfer restrictions contained in the Company’s partnership agreement; the ability of the Company’s subsidiaries to fully utilize their tax advantages; impacts resulting from changes in tax rates, laws or regulations, including US government tax reform; labor interruptions following a US federal government mandated vaccine. These statements involve significant risks and uncertainties, and no assurance can be given that actual results will be consistent with these forward-looking statements. Investors should carefully read the factors described in the “Risk Factors” section of documents filed by the Company with the SEC, including the Company’s Form 10-K for the fiscal year ended December 31, 2020, to obtain information on risk factors that could affect the Company’s results. Any forward-looking statement made in this press release speaks only as of the date hereof. Unless otherwise provided by law, the Company does not undertake to publicly update or revise forward-looking statements, whether as a result of new information, future events, changes in circumstances or for any other reason. .
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