IBC Advanced Alloys entered into a new master lease agreement with Utica Leaseco, Utica Equipment Finance and certain of its own U.S. subsidiaries in support of the ongoing expansion and consolidation of its copper alloys production facility in Franklin, IN.

“This equipment leasing arrangement allows us access to capital necessary to continue to execute on our expansion and consolidation of the copper alloys division’s state-of-the-art foundry facility at our North American headquarters in Franklin, IN,” Mark A. Smith, CEO and chairman of IBC Advanced Alloys, said. “Construction of the new facility is well underway now, and we look forward to completing this effort and achieving the cost savings and expanded production capacity it is expected to provide.”

Pursuant to the lease, IBC’s subsidiaries will grant a security interest in certain equipment located on the lessees’ premises in exchange for $900,000 in connection with a capital lease facility for a four-year term. IBC intends to use the proceeds of the lease to advance the copper alloys division’s consolidation and expansion and for working capital purposes.

IBC’s subsidiaries will make lease payments in 51 monthly installments of approximately $24,389.80, with monthly lease payments increasing by 1% for every 0.25% increase to the prime rate of Comerica Bank.

Pursuant to the terms of the lease, the subsidiaries will pay aggregate fees and expenses consisting of an approximately $18,000 origination fee in addition to $43,200 for legal, appraisal and title expenses at close and an annual lease administration fee of $5,000. The lease is also subject to an early termination fee ranging from 1% to 5% of the total funding amount, which decreases over the term of the lease. The lease is further subject to customary terms for similar lease arrangements in the United States’ manufacturing sector.