Ormet Corporation, a U.S. producer of aluminum, announced that it has secured a new $50 million revolving credit facility and a new $110 million term loan that will be utilized to refinance all currently outstanding debt, make contributions to the pension plans to satisfy the Company’s 2006 waiver with the Pension Benefit Guaranty Corporation and provide liquidity for other general corporate purposes.

The new revolving credit facility was placed with Wachovia Capital Finance Corporation. The credit facility is for a term of three years and is secured by a first lien on current assets and a second lien on all other assets, with interest at prime plus 75 BPS or LIBOR plus 275 BPS.

Ormet also announced that Bank of New York Mellon Corporation will be the agent for a new $110 million, four-year term loan which has an original issue discount of 5% with 14% cash pay interest. The loan is secured by a first lien on the property plant and equipment with a second lien on the balance of the assets. In connection with this term loan, the Company has issued warrants to acquire 1,850,000 shares of the Company’s common stock to term lenders. The warrants are exercisable at $3 per share and have a term of five years.

“We have completed the next step in our plan to achieve a more stable capital structure after entering into a long-term power contract last fall,” said Mike Tanchuk, Ormet’s CEO. “We are encouraged by the progress we have made and will now focus on taking advantage of the volatility of the aluminum market and potential strategic options for the Company.”