Ryerson to start roadshow Tuesday for $575 million two-part senior secured note offering

By Paul A. Harris

St. Louis, Sept. 21 - Ryerson Inc. will begin a roadshow on Tuesday for its $575 million two-part offering of senior secured notes, according to an informed source.

An investor call is scheduled for 12:30 p.m. ET on Thursday.

The roadshow is set to conclude on Oct. 3.

The offering is comprised of a $425 million tranche of eight-year notes, which come with four years of call protection, and a $150 million tranche of seven-year notes, which become callable at 106 in two years.

Banc of America Securities LLC is the manager for the Rule 144A with registration rights offering.

Credit ratings remain to be determined.

The notes are secured by a perfected first-priority interest in real property (including owned real estate interests and equipment), capital stock, interests in joint ventures, trademarks and other tangible and intangible assets, as well as by a pledge of 65% of the interest of foreign subsidiaries. The first-priority collateral was appraised on June 30, 2007 and was valued at between $696 million and $726 million.

In addition the notes will have second-priority interest in accounts receivables and inventory.

Proceeds will be used to partially finance the acquisition of the company by Platinum Equity, LLC.

The financing also includes a $1.35 billion asset-based revolving credit facility.

Ryerson is a Chicago-based metals processing and distribution company.

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