LOUISVILLE, KY (March 2, 2016) -- Industrial Services of America, Inc. (NASDAQ: IDSA), (the “Company” or “ISA”), a company that buys, processes and markets ferrous and non-ferrous metals and other recyclable commodities and buys, dismantles and sells used auto parts, today announced the closing of a new two-year revolving line of credit of up to $6 million. This is the most recent step in a series of actions focused on improving the Company’s balance sheet in preparation of exploring various initiatives. Additionally, the Company has formed a special committee of independent board members to participate in the evaluation of growth and strategic options.
On February 29, 2016, the Company entered into a Loan and Security Agreement with MidCap Business Credit, LLC (“MidCap”). The loan is secured by substantially all of the assets of the Company. Proceeds from this loan were used to pay transaction expenses and to pay off and close the remaining balance on the Company’s existing revolving line of credit with Wells Fargo Bank, which was set to expire on March 15, 2016. Todd Phillips, ISA’s Chief Financial Officer commented, “We are excited to have MidCap as our new financial partner. This revolving facility will provide the Company with working capital. At closing of this transaction, ISA had less than $0.5 million of debt outstanding.”
Previously, the Company announced various other strategic steps to address the extremely challenging scrap metal market and the Company’s related liquidity challenges. From January 1, 2014 to the present, the Company paid down approximately $16 million of debt through a variety of transactions.
Sean Garber, President of ISA noted, “These are extraordinarily challenging times for the Scrap and the recycling industry as a whole. ISA has certainly felt the impact from these unprecedented markets. We continue to focus on costs and margin improvements while working to address the pressure on reduced volumes due to low commodity prices.”
Mr. Garber added, “The entire ISA team has worked tirelessly to utilize all the company’s resources to properly position ISA towards the future. We are all very excited in laying the ground work in order to explore growth opportunities outside the cyclical recycling industry.”
ISA’s SEC filings are available for review at the Securities and Exchange Commission web site at http://www.sec.gov/edgar/searchedgar/companysearch.html.