Reliance Steel obtains $1.5 billion revolver, $600 million term loan

By Tali Rackner

Norfolk, Va., Oct. 3 – Reliance Steel & Aluminum Co. entered into a new five-year credit agreement comprised of a $1.5 billion revolving credit facility and a $600 million term loan, according to a press release.

The new credit agreement replaces the company's existing credit agreement.

Both facilities allow for prepayments, and the credit agreement includes an option to increase the revolving credit facility by up to an additional $500 million.

The terms of the new credit agreement are substantially consistent with the existing credit agreement.

Reliance Steel intends to use proceeds to retire $350 million of 6.2% senior notes when they mature on Nov. 15, 2016.

Bank of America NA is the administrative agent, and JPMorgan Chase Bank, NA and Wells Fargo Bank, NA are co-syndication agents.

"We are pleased to announce our new credit agreement which provides ample liquidity to support our ongoing growth, extends our debt maturities and will provide meaningful interest expense savings when we pay off our 6.2% senior notes," president and chief executive officer Gregg Mollins said in a news release.

The metals service center company is based in Los Angeles.

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