IRVING, Texas, April 8, 2011 /PRNewswire/ -- Commercial Metals Company (NYSE: CMC) headquartered in Irving, Texas, announced today that it and several of its subsidiaries have entered into a facility with Wells Fargo Bank, N.A to provide for a two year sale of accounts receivables. This new facility, which replaces the accounts receivable securitization program that expired in January 2011, is a two-year program which currently provides committed funding to $100 million and includes the flexibility to increase the funding amount.
The facility provides a source of liquidity for the company that is additional to the existing $400 million commercial paper program and committed Credit Agreement.
Murray R. McClean, CMC's Chairman and Chief Executive Officer commented, "This new agreement reflects our continued efforts to ensure that CMC has sufficient liquidity with financial flexibility. This facility will provide added financial support for our planned growth, both organic and through future investments."
Commercial Metals Company and subsidiaries manufacture, recycle and market steel and metal products, related materials and services through a network including steel minimills, steel fabrication and processing plants, construction-related product warehouses, a copper tube mill, metal recycling facilities and marketing and distribution offices in the United States and in strategic international markets.
This Press Release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified by phrases such as we or our management "expects," "anticipates," "believes," "plans to," "ought," "could," "will," "should," "likely," "appears," "estimates," "projects," "forecasts," "outlook" or other similar words or phrases. There are inherent risks and uncertainties in any forward-looking statements. Variances will occur and some could be materially different from our current opinion. Developments that could impact our expectations include the factors described or referenced in the Company's Form 10-K for the year ended August 31, 2010 or subsequent SEC filings. You should not place undue reliance on these forward-looking statements, which reflect our opinions as of the date of this Press Release. We undertake no obligation to publicly release any revisions to the forward-looking statements after the date of this document.
SOURCE Commercial Metals Company