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Reliance amends credit facility to help fund Metals USA purchase

Keywords: Tags  Reliance Steel & Aluminum Co., David H. Hannah, revolving credit facility, Metals USA, acquisition, service center operator

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."

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