Reliance Steel pricing $500 million 10-year notes Tuesday for merger

By Andrea Heisinger

New York, April 9 - Reliance Steel & Aluminum Co. is expected to sell $500 million of 10-year senior notes (Baa3/BBB/) in Tuesday's session, an informed source told Prospect News.

There is a change-of-control put at 101 on the notes.

Bookrunners are BofA Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities LLC.

Proceeds will be used to finance a portion of the acquisition of Metals USA Holdings Corp. and its subsidiaries.

There is a mandatory call at 101 if the acquisition is not closed by Dec. 15, or if a merger termination event occurs.

The notes are guaranteed by the domestic subsidiaries that are a borrower or guarantor under a credit agreement or the company's 6.2% notes due 2016 and 6.85% notes due 2036.

The metals service center company is based in Los Angeles.

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