Geneva Steel has opened a revolving line of credit with Bank of America National Trust and Savings Association for $75 million.

Geneva will use the line of credit, in addition to term debt and working capital, to fund $230 million worth of modernization proj-ects, according to Dennis L. Wanlass, chief financial officer.The three-year agreement with Bank of America replaces Geneva's former line of credit with Westinghouse Credit Corp. Under the terms of its agreement with Westinghouse Credit Corp., Geneva had a $100 million line of credit.

Wanless said the lower credit amount is due to two factors: a customer arranged to pay off outstanding debt "so we didn't have to go out and borrow $15 million" and a "tough" financial environment.

"Technically we don't need a $100 million line," Wanless said. The line of credit is secured primarily by Geneva's accounts receivables and inventories.

Wanless said Geneva had to switch to a new source of credit or negotiate a new agreement with Westinghouse to resolve a conflict between its term debt and credit line lenders. Westinghouse listed sophisticated software used at Geneva as collateral backing its line of credit; because the software system is vital to the plant's operation, that arrangement was unacceptable with Geneva's term debt lender.

Bank of America National Trust and Savings Association is acting as principal lender on the line of credit and as the agent for other participants.

Geneva can drawn on three borrowing alternatives through the agreement: LIBOR, CD and Prime. All three alternatives offer lower interest rates than previously available from Westinghouse, Wanless said.