- Availability Increased from $450
Million to $600 Million
- Maturities Extended to 2026 and 2028
- Flexibility Enhanced With Investment Grade Structure
TORONTO, July 15,
2024 /CNW/ - Russel Metals Inc. (TSX: RUS) announces
that it has renewed and extended its credit facility with a
syndicate of banks led by RBC Capital Markets. The new credit
facility has total availability of $600
million and is comprised of: (i) a $400 million revolving credit facility with a
maturity of July 2028; (ii) a
$50 million letters of credit
facility with a maturity of July
2028; and (iii) a $150 million
revolving credit facility with a maturity of July 2026. The
facility's total availability increased by $150 million, is unsecured with no borrowing base
restrictions and includes more flexible investment grade type
financial covenants.
Martin L. Juravsky, Executive
Vice President and CFO of Russel commented, "Over the past several
years, we have re-engineered our business portfolio as we
repatriated approximately $400
million of capital from underperforming business units and
reinvested in our core operations. This portfolio evolution
has occurred in conjunction with strong free cash flow generation,
such that we now have the strongest capital structure in Russel's
history. As a result, we have improved from a non-investment grade
credit to an investment grade type company. As we have
progressed through this multi-year journey, we are pleased to have
the support of our long-standing and new bank partners. With
the modernization of our bank structure, we will have greater
flexibility as we continue with our growth initiatives."
About Russel Metals Inc.
Russel Metals is one of the largest metals distribution
companies in North America, with a
growing focus on value added processing. It carries on
business in three segments: metals service centers, energy products
and steel distributors. Its network of metals service centers
carries an extensive line of metal products in a wide range of
sizes, shapes and specifications, including carbon hot rolled and
cold finished steel, pipe and tubular products, stainless steel,
aluminum and other non-ferrous specialty metals. Its energy
products operations carry a specialized product line focused on the
needs of energy industry customers. Its steel distributors
operations act as master distributors selling steel in large
volumes to other steel service centers and large equipment
manufacturers mainly on an "as is" basis.
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Cautionary Statement on
Forward-Looking Information
Certain statements contained in this press release constitute
forward-looking statements or information within the meaning of
applicable securities laws relating to, among other things, the
anticipated benefits of the financing. Forward-looking
statements are often, but not always, identified by the use of
words such as "expect", "may", "will", "could", "might", "should",
"believe" and similar expressions. Forward-looking statements
are necessarily based on estimates and assumptions that, while
considered reasonable by us, inherently involve known and unknown
risks, uncertainties and other factors that may cause actual
results or events to differ materially from those anticipated in
such forward-looking statements.
While we believe that the expectations reflected in our
forward-looking statements are reasonable, no assurance can be
given that these expectations will prove to be correct, and our
forward-looking statements included in this press release should
not be unduly relied upon. These statements speak only as of
the date of this press release and, except as required by law, we
do not assume any obligation to update our forward-looking
statements.
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SOURCE Russel Metals Inc.