Oregon Steel signs commitment letter for $75 million bank loan

By Sara Rosenberg

New York, June 26 - Oregon Steel Mills Inc. said it signed a commitment letter for a new $75 million revolving credit facility due June 30, 2005. The new loan will replace the existing credit facility, which would have expired on Sept. 30, 2002.

The interest rate on the loan is Libor plus 300 basis points, the company said in a news release. Funds will be drawn based upon the Portland, Ore. steel company's accounts receivable and inventory balances.

Completion of the bank loan is contingent upon the successful sale of $300 million first mortgage notes, which will be used to refinance the company's existing $228 million first mortgage notes due June 2003. Goldman, Sachs & Co. is bookrunner for the note offering.

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