Loan review committee backs Liberty Steel’s $2.65 million Keystone Fund request; full board to consider in August

Liberty Steel asked the Peoria County board for a $2,650,000 loan from the county’s Keystone Fund to finance capital upgrades and bring back employees at its Bartonville rod-and-wire facility, company representatives told the board. The loan review committee unanimously recommended the application and staff said the full board will consider a formal loan resolution at the August meeting.

The company said the proceeds would fund specific reliability and productivity projects in the melt shop, rod mill and wire mill, reduce operating costs and allow some third‑party contractors’ work to be internalized, accelerating rehiring. “We’re asking for a 2,650,000 loan,” consultant Chris Colter said during the presentation; Mark Frackdoll, vice president of finance, said the package is part of a larger financing plan that includes state support and private equity.

Liberty’s presentation described a multi‑part financing plan: $2,650,000 in county loan funds, $2,050,000 in owner equity (for a $4.7 million project at this stage), a $50 million revolver committed by private lenders, and state incentive applications. The company said the county loan would be structured as a 10‑year amortizing business development loan at a locked 4.5 percent rate, with first‑lien security on equipment purchased with loan proceeds and UCC‑1 filings to be recorded. Staff reported $9.3 million in the Keystone Fund, with about $7.1 million available after current commitments and the proposed loan meeting the fund’s underwriting parameters.

Liberty said the broader financing package depends on two state programs: a targeted EDGE income‑tax benefit (statutory language in Public Act 104‑006) and an application for a capital grant from the Illinois Department of Commerce and Economic Opportunity (DCEO). Company representatives said the EDGE benefits require an application within about 90 days and include conditions: relocation of U.S. headquarters to Illinois, a minimum $40 million capital investment by 2030, and retention of at least 700 full‑time employees by Dec. 31, 2026. “There’s a minimum of a $45,000,000 benefit,” the company told the board when describing the EDGE calculation tied to payroll tax deferral.

Company finance slides presented to the loan committee show owner equity of $2,050,000 and projected paybacks on specific capital items as short (roughly one to 1.5 years for several improvements). Representatives said the plant returned to profitability in June 2025 and reported roughly 576–650 employees in recent months, with a goal of reaching 700 and eventually returning to historical employment levels above 800. They also described market and operational headwinds in 2024 — including international overcapacity, interest‑rate impacts on construction and a recent rod‑mill control system upgrade that temporarily reduced capacity — as reasons the loan and other incentives were needed to stabilize operations.

Board staff said the loan review committee endorsed the application and that a formal term sheet and write‑up will be provided to all board members before the August meeting. No formal loan vote occurred at the meeting; the county board will consider the loan request at its scheduled August session.

If approved, the loan would be secured by equipment purchased with the county funds and repaid on a 10‑year schedule at the proposed 4.5 percent rate, staff said. The county’s loan packet will include final amortization details, collateral documentation and the committee’s recommendation. The company and county staff said they will distribute the full presentation and the loan write‑up to the board members this week for review.