Industrial Services of America, Inc., a company that buys, processes and markets ferrous and non-ferrous metals and other recyclable commodities and buys, dismantles and sells used auto parts, 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. 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.

Headquartered in Louisville, Kentucky, Industrial Services of America, Inc., is a publicly traded company that buys, processes and markets ferrous and non-ferrous metals and other recyclable commodities, and buys, dismantles and sells used auto parts.