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Metals USA Completes New Term Loan Debt Financing

December 18, 2012, 07:47 AM
Related: Metals USA, Term Loan

Metals USA entered into a new seven year senior secured term loan in the amount of $225 million and has redeemed all $226.3 million of its outstanding 11 1/8% Senior Secured Notes due 2015. The new term loan bears interest at LIBOR plus 5.0%, and includes a 1.25% LIBOR floor and 1% of original issue discount.  The interest rate is 6.25% at the closing of the term loan compared to an interest rate of 11 1/8% on the notes.

Metals USA projects the refinancing will reduce annual cash interest expense by approximately $10 million, which is expected to generate positive impacts to both free cash flow and annual pro forma earnings per share.

Metals USA provides a wide range of products and services in the heavy carbon steel, flat-rolled steel, non-ferrous metals, and building products markets.

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