CHICAGO Metals USA Inc., a subsidiary of Metals USA Holdings Corp., has received commitments for, and intends to enter into, a new seven-year senior secured term loan of $225 million.
The term loans interest rate is expected to be 6.25 percent, compared with a rate of 11⅛ percent on Metals USAs outstanding senior secured notes due 2015. The proceeds of the term loan will be used to refinance the 2015 notes.
The Fort Lauderdale, Fla.-based company took the step in light of the "current attractive condition of the credit markets," company chairman, president and chief executive officer Lourenco Goncalves said in a statement. The transaction will reduce annual interest expenses by roughly $10 million, he said.