CHICAGO, July 29, 2015 /PRNewswire/ -- Ryerson
Holding Corporation (NYSE: RYI) announced today that it entered
into a new $1 billion credit facility
secured primarily by the inventory and accounts receivables of the
company's U.S. and Canadian operating subsidiaries, replacing its
previous credit facility. Ryerson has used the new facility to
repay its previous facility and intends to use the new facility for
general corporate purposes, which may include working capital
needs, capital expenditures, funding of possible acquisitions, and
satisfaction of other obligations of the company.
The new credit facility has a maturity date of the earlier of
July 24, 2020 or 60 days prior to the
stated maturity of any outstanding indebtedness with a principal
amount of $50 million or more. Under
the new agreement, the total credit facility size was reduced to
$1 billion, the interest rate on
current outstanding borrowings decreased 50 basis points, and
commitment fees on amounts not borrowed were reduced 12.5 basis
points, as compared to the prior credit facility. The credit
facility also includes a swing line and a letter of credit
facility.
"Ryerson's strong banking relationships and continuing
transformation momentum allowed us to take advantage of favorable
asset-based lending market conditions to lower our interest rate
and extend the maturity date," stated Erich
Schnaufer, Ryerson's interim chief financial officer. "This
opportunistic refinancing will reduce our borrowing costs while
maintaining the ability to draw funds as needed to further the next
leg of the company's transformation."
About Ryerson
Ryerson is a processor and
distributor of metals with operations in the United States, Mexico, Canada, China
and Brazil. The company serves a
variety of industries, including customers making products or
equipment for construction, packaging, oil and gas and truck
trailers. Founded in 1842, Ryerson is headquartered
in the United States and employs approximately 3,700
employees in more than 100 locations. For more information, visit
www.ryerson.com.
Forward-Looking Statements
Certain statements
made in this press release and other written or oral statements
made by or on behalf of the company constitute "forward-looking
statements" within the meaning of the federal securities laws,
including statements regarding our future performance, as well as
management's expectations, beliefs, intentions, plans, estimates or
projections relating to the future. Such statements can be
identified by the use of forward-looking terminology such as
"believes," "expects," "may," "estimates," "will," "should,"
"plans" or "anticipates" or the negative thereof or other
variations thereon or comparable terminology, or by discussions of
strategy. The company cautions that any such forward-looking
statements are not guarantees of future performance and may involve
significant risks and uncertainties, and that actual results may
vary materially from those in the forward-looking statements as a
result of various factors. Among the factors that significantly
impact the metals distribution industry and our business are: the
cyclicality of our business; the highly competitive and fragmented
market in which we operate; fluctuating metal prices; our
substantial indebtedness and the covenants in instruments governing
such indebtedness; the integration of acquired operations;
regulatory and other operational risks associated with our
operations located inside and outside of the United States; work stoppages; obligations
regarding certain employee retirement benefit plans; the ownership
of a majority of our equity securities by a single investor group;
currency fluctuations; and consolidation in the metals producer
industry. Forward-looking statements should, therefore, be
considered in light of various factors, including those set forth
above and those set forth under "Risk Factors" in our annual report
on Form 10-K for the year ended December 31,
2014 and in our other filings with the Securities and
Exchange Commission. Moreover, we caution against placing
undue reliance on these statements, which speak only as of the date
they were made. The company does not undertake any obligation
to publicly update or revise any forward-looking statements to
reflect future events or circumstances, new information or
otherwise.
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SOURCE Ryerson Holding Corporation