Russel Metals $175 million 10-year notes price talk 6 3/8%-6 5/8%, to price Friday

By Paul A. Harris

St. Louis, Feb. 12 - Price talk of 6 3/8% to 6 5/8% emerged Thursday on Russel Metals Inc./RMI USA LLC's proposed $175 million offering of 10-year senior notes (Ba3/BB-), a market source said.

The deal is expected to price on Friday.

Citigroup is running the books on the Rule 144A offering.

The notes will come with five years of call protection.

Proceeds will be used to fund the tender for $115.6 million units made up of 10% senior notes due 2009, to repurchase its 7½% Class II preferred shares, also to repurchase 7½% class II preferred shares series C and 8% subordinated debentures due June 15, 2006.

The company is a Toronto-based metals distributor.

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