Steel Products

Citing US tariffs, Algoma ups credit facility to $375M

September 22, 2025

Algoma Steel is increasing its credit facility from USD$300 million to USD$375 million due to “market conditions.”

The Sault Ste. Marie, Ontario-based steelmaker said Export Development Canada (EDC) is supplying the additional $75 million. It joins Algoma’s existing lending syndicate as a direct lender under its asset-based revolving credit facility (ABL).

Part of larger plan

The company noted that it made the transaction as part of a broader set of liquidity initiatives. Algoma is pursuing them to strengthen its financial position and provide flexibility to navigate market conditions.

“Despite the challenging market conditions brought on by tariffs, this upsizing of our ABL Facility, and the addition of EDC to our banking group, provides Algoma with enhanced financial flexibility to support our operations and strategic priorities,” Rajat Marwah, Algoma CFO, said in a statement on Sept. 18.

“The continued support of our lenders, Wells Fargo and BMO Capital Markets, and the participation of EDC reflect confidence in Algoma’s transformation to Electric Arc Furnace steelmaking and our long-term competitiveness as a sustainable Canadian steel producer,” Marwah added.

Algoma noted that the ABL Facility will continue to hold a first-priority lien on accounts receivable, inventory, and related assets of Algoma and its subsidiaries. It remains subject to the terms of the credit agreement.

Q2 earnings loss

As previously reported in late July, the steelmaker swung to a loss of Canadian $110.6 million in the second quarter vs. net earnings of CAD$6.1 million a year earlier. Algoma noted an “unprecedented disruption” in the steel industry due to the tariff situation.

Algoma poured the first steel from one of its two EAFs in the second quarter. The company is continuing its shift from blast furnace to EAF steelmaking.

Ethan Bernard

Ethan Bernard is managing editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years, starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA. in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.