Company replaces $625 million asset-based facility due November 2011
By Devika Patel
Knoxville, Tenn., Dec. 17 - Metals USA Holdings Corp. said Flag Intermediate Holdings Corp., Metals USA, Inc. and other subsidiaries have amended the company's existing $625 million senior secured asset-based credit facility due November 2011. The facility was replaced with a new $500 million five-year senior secured asset-based credit facility.
Interest accrues on the facility at a rate equal to Libor plus 200 basis points to 275 bps, depending on the monthly excess availability amount. The company may increase the facility to a maximum of $750 million.
Advances will be tied to the company's available collateral, which is based upon percentages of eligible accounts receivable and inventories.
Bank of America, NA is the administrative agent and collateral agent for the new facility.
"Our ABL facility is a critical component of the Metals USA capital structure," chairman, president and chief executive officer Lourenco Goncalves said in a press release. "With this renewal, Metals USA and its lenders have created an ABL facility that provides the means to improve the execution of our growth strategy."
Houston-based Metals USA is a provider of processed carbon steel, stainless steel, aluminum, red metals and manufactured metal components.
| Issuer: | Metals USA Holdings Corp.
|
| Issue: | Senior secured asset-based credit facility
|
| Amount: | $500 million
|
| Maturity: | Five years
|
| Coupon: | Libor plus 200 bps to 275 bps
|
| Warrants: | No
|
| Settlement date: | Dec. 17
|
| Stock symbol: | NYSE: MUSA
|
| Stock price: | $14.30 at close Dec. 17
|
| Market capitalization: | $529.44 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
