Rhombus begins tender offer, consent bid for Ryerson's 8¼% notes

By Susanna Moon

Chicago, Sept. 21 - Rhombus Merger Corp. said it launched a tender offer and consent solicitation for Ryerson Inc.'s $150 million principal amount of 8¼% senior notes due 2011.

The tender offer expires at 8 a.m. ET on Oct. 22. The consent solicitation ends at 5 p.m. ET on Oct. 4.

Investors who tender the notes by the consent deadline will receive $1,041.25 per $1,000 principal amount of the notes, including a consent payment of $30.00.

Pricing for the notes will be calculated based on the present value, discounted using the bid-side yield on the 3 3/8% U.S. Treasury note due Dec. 15, 2008 plus a fixed spread of 50 basis points.

The pricing date will be at least 10 business days before the expiration date of Oct. 22, according to a press release.

Rhombus Merger is a wholly owned subsidiary of Rhombus Holding Corp.

Rhombus is also seeking consents to amend the indenture to eliminate substantially all of the restrictive covenants, certain events of default and related provisions. Holders may not tender notes without delivering consents or vice versa.

The offer is subject to the receipt of tenders from a majority of noteholders, completion of the merger and related financing, according to the release.

Global Bondholder Services Corp. (866 807-2200 or call collect 212 430-3774) is the information agent. Banc of America Securities LLC (888 292-0070 or call collect 704 388-9217) is the dealer manager and solicitation agent.

Ryerson is a Chicago-based metal processor.

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