CHICAGO Reliance Steel & Aluminum Co. has amended its $1.5-billion unsecured revolving credit facility and raised $500 million in a new term loan.
"These transactions are a significant step in obtaining the financing necessary to complete our acquisition of Metals USA (Holdings Corp.)," David H. Hannah, chairman and chief executive officer of the Los Angeles-based service center operator, said in a statement April 5. "We expect to close (the acquisition) in the second quarter."
The new five-year credit agreement, set to expire in April 2018, includes an increase option for up to an additional $500 million. Both facilities allow for prepayments.
Hannah said the financial markets "remain favorable and we are happy with the pricing and other terms under the new facility."