Russel Metals announces $175 million 10-year deal to fund tender

By Paul A. Harris

St. Louis, Jan. 23 - Russel Metals Inc. and RMI USA LLC, its wholly owned subsidiary, announced plans on Friday to sell up to $175 million of senior notes due 2014 via Rule 144A.

Proceeds will be used to fund the tender for Russel Metals' 10% senior notes due 2009 and RMI USA LLC's 10% senior notes due 2009. The total amount of notes outstanding is $115.6 million.

Citigroup is the dealer manager for the tender offer. The consent solicitation expires Feb. 5.

Proceeds will also be used to repurchase 7½% Class II preferred shares, series C, and 8% subordinated debentures due June 15, 2006.

The Toronto-based company processes, imports, exports and distributes steel and other metals.

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