Ryerson Tull to get new credit facility for Integris Metals acquisition

By Sara Rosenberg

New York, Oct. 27 - Ryerson Tull Inc. plans to get a new secured credit facility to help finance its acquisition of Integris Metals Inc. for $410 million plus the assumption of about $250 million of debt.

It is "likely" that the company's existing lead banks - JPMorgan and GE Capital Corp. - will be leading this new credit facility as well, a company spokesman told Prospect News Wednesday, "but nothing has been set yet."

"We'll launch [the bank deal] fairly quickly as we move toward the close of the acquisition," the spokesman added. Currently, the company anticipates completing the acquisition in early 2005 subject to customary closing conditions and regulatory approval.

Ryerson Tull also plans to use cash on hand to fund the transaction. Plus, the company anticipates refinancing a portion of the new credit facility borrowings with funds raised through debt and/or equity offerings in the capital markets.

"Debt would be something like $1.1 billion at closing and that would put us with a debt-to-capitalization ratio in the low 70s at that point in time," company officials said in a conference call Wednesday.

"As far as speculating on what types of instruments, what we would pay, whether it's debt or common equity, I think that will be a part of what the market looks like as we go forward," officials added in the call.

The company is not required to take out any of its bonds in connection with this transaction.

Ryerson Tull is a Chicago-based distributor and processor of metals and other materials. Integris is a Minneapolis-based metals service center.

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