Oregon Steel Mills to use borrowings on new revolver to help fund redemption of 10% notes

New York, June 14 - Oregon Steel Mills, Inc. said it will use borrowings drawn from its new $175 million revolving credit facility to help fund the redemption of its $303 million of 10% first-mortgage notes due July 15, 2009.

The company will redeem the notes at 105% on July 15.

Additional funds will come from cash on hand.

"One of our stated priorities over the past two years has been to reduce debt and improve our financial liquidity," president and chief executive officer Jim Declusin said in a news release.

"This action eliminates the expensive high-yield debt issued in 2002, reduces our net interest expense dramatically and contributes to our ongoing efforts to strengthen our financial position."

The new revolver was completed on June 6 with General Electric Capital Corp. as lead bank.

Oregon Steel is a Portland, Ore.-based manufacturer and seller of specialty and commodity steel products.

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