Acme United refinances with $65M facility, adds City National as second lender

What's the deal? Acme UnitedDealroom has a profile for this one. Try Dealroom → Corporation (NYSE American: ACU) has secured a new $65 million syndicated credit facility with HSBCDealroom has a profile for this one. Try Dealroom → Bank USA and City National BankDealroom has a profile for this one. Try Dealroom →, a US subsidiary of Royal Bank of Canada. HSBC will serve as administrative agent for the syndicate.

Why now? The agreement replaces a prior $65 million facility with HSBC that was set to expire on May 31, 2027. The new facility runs until July 15, 2029, extending the Shelton, Connecticut-based company's runway by more than two years.

What's the endgame? Acme United said the facility will provide liquidity for growth, acquisitions, dividends, and other business activities. The new agreement carries collateral pledges, covenants, and terms the company described as materially similar to the prior deal.

The most notable change is the second lender. "Bringing a second top-tier global bank into our credit facility diversifies our funding sources and positions us well to continue executing on our growth initiatives," said chairman and chief executive officer Walter C. Johnsen.

The signal: For a company that leans on acquisitions to grow, adding City National alongside HSBC spreads its funding risk across two banks — a hedge worth having as credit conditions tighten. "This new facility gives us greater financial flexibility to support our growth plans," said chief financial officer Paul G. Driscoll.

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