Ryerson modifies definition of trigger event in credit agreement

By Toni Weeks

San Luis Obispo, Calif., June 1 – Ryerson Holding Corp. wholly owned subsidiary Joseph T. Ryerson & Son, Inc. amended its credit agreement dated Oct. 19, 2007 on May 26 with Bank of America, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The amendment modifies the circumstances that constitute a trigger event, following which the borrowers and their subsidiaries would be subject to a more-restrictive fixed-charge coverage ratio.

With the amendment, a trigger event occurs if borrowing availability on any business day is less than the greater of (i) 10% of the total borrowing base and (ii) $75 million.

Prior to the amendment, a trigger event occurred if availability on any business day was (a) less than 10% of the lesser of (ii) the lenders’ aggregate commitments and (ii) the borrowing base or (b) less than $125 million.

The amendment also reduces the borrowing availability level necessary to have been maintained for 45 days in order to exit a cash dominion event to $100 million from $150 million.

Ryerson is a Chicago-based processor and distributor of metals.

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