ARMCO ENTERS NEW BANK AGREEMENT
ARMCO ENTERS NEW BANK AGREEMENT PARSIPPANY, N.J., Nov. 21 /PRNewswire/ -- Armco Inc. (NYSE: AS)
announced that effective today it had entered into a new bank credit agreement with Chase Manhattan Bank, N.A. This new agreement, which is effective through Dec. 31, 1992, provides for unsecured borrowings up to $100 million on a revolving credit basis. It replaces a credit facility which was to expire Dec. 31, 1991. In a related development, Armco said one of the steps necessary to complete its previously announced acquisition of Cyclops Industries, Inc. is to establish a new credit facility which would include Cyclops and its subsidiaries. The company said that it is currently working with Chase Manhattan its agent bank on a $250 million credit facility which will fully satisfy the merger conditions and be effective on completion of the transaction. It is anticipated that borrowings under this facility will be secured by the inventories and accounts receivable of Armco and certain of its domestic subsidiaries.
Armco Inc. produces stainless, electrical and carbon steels and steel products. Through joint ventures the company also produces coated and high-strength carbon flat-rolled steels and oilfield equipment and machinery. Insurance services are provided through businesses Armco intends to sell or liquidate. In a separate release today, Armco announced that a special committee of the board of directors had concluded a reassessment of Armco's carrying value of its insurance companies to be sold and that as a result a $170 million charge would be recorded in the fourth quarter. -0- 11/21/91 /CONTACT: James A. Herzog of Armco, 201-316-5276/ (AS) CO: Armco Inc. ST: New Jersey IN: MNG SU: FNC SM -- NY020 -- 5757 11/21/91 09:35 EST
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|Date:||Nov 21, 1991|
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