Moody's may lower Ryerson Tull

Moody's Investors Service said it placed its ratings for Ryerson Tull Inc. under review for possible downgrade in connection with Ryerson's planned acquisition of Integris Metals Inc. from Alcoa and BHP Billiton. Ratings on review include the company's Ba3 senior implied rating, B1 senior unsecured issuer rating, and B1 rating on the company's $100 million 9 1/8% senior unsecured notes due 2006.

The review anticipates that the acquisition will increase Ryerson's leverage beyond levels associated with its current Ba3 senior implied rating, Moody's said.

Ryerson is acquiring Integris for $660 million, comprising $410 million in cash and the assumption of about $250 million of debt. Ryerson has indicated that the initial funding for the acquisition will come from cash on hand and borrowings under a new secured credit facility. Subject to market conditions, a portion of these borrowings may be refinanced through a debt or equity offering. The acquisition is expected to close in early 2005.

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