New Issue: Russel Metals sells $175 million 10-year notes to yield 6 3/8%

By Paul A. Harris

St. Louis, Feb. 13 - Russel Metals Inc. sold $175 million of 10-year senior notes (Ba3/BB-) Friday at par to yield 6 3/8%, according to an informed source.

Price talk was 6 3/8% to 6 5/8%.

Citigroup ran the books on the Rule 144A issue.

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 the 7½% class II preferred shares series C and 8% subordinated debentures due June 15, 2006.

The issuer is a Toronto-based metals distributor.

Issuer:	Russel Metals Inc.
Amount:	$175 million
Maturity:	March 1, 2014
Security description:	Senior notes
Bookrunner:	Citigroup
Coupon:	6 3/8%
Price:	Par
Yield:	6 3/8%
Spread:	234 basis points
Call features:	Callable after March 1, 2009 at 103.188, 102.125, 101.063, par on March 1, 2012 and thereafter
Equity clawback:	Until March 1, 2007 for 35% at 106.375
Trade date:	Feb. 13
Settlement date:	Feb. 20
Ratings:	Moody's: Ba3
	Standard & Poor's: BB-
Price talk:	6 3/8%-6 5/8%

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