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