Ryerson gives early tender results for floaters, 12% and 14½% notes

By Jennifer Chiou

New York, Oct. 9 - Ryerson Inc. announced the receipt of early tenders for the following:

• $95.5 million of its $102.92 million of floating-rate senior secured notes due Nov. 1, 2014;

• $339.61 million of its $368.66 million of 12% senior secured notes due Nov. 1, 2015; and

• $482.85 million of sole stockholder Ryerson Holding Corp.'s $483 million of 14½% senior discount notes due 2015.

In connection with the tender offers, Ryerson is soliciting consents to proposed amendments to the indentures governing the notes to eliminate substantially all of the restrictive covenants, some events of default and related provisions.

Notes validly tendered and accepted for purchase will receive, per $1,000 principal amount of notes, $714.18 for the 14½% notes, $1,002.50 for the floating-rate notes and $1,035.00 for the 12% notes. The amount includes a consent payment of $30.00 for notes tendered prior to 5 p.m. ET on Oct. 9, the consent time.

Noteholders will also receive accrued interest up to but not including the settlement date.

Holders may not tender their notes without delivering consents or vice versa.

Settlement for notes tendered by the consent time is expected Oct. 10, while settlement for notes tendered after the consent date but before the expiration date, 11:59 p.m. on Oct. 23, will occur promptly after that date, the release noted.

As reported, Ryerson intends to fund its tender offer with the proceeds of a concurrent $900 million note offering, consisting of $600 million of senior notes due 2017 and $300 million of senior notes due 2018. The new notes will be issued by Ryerson and subsidiary Joseph T. Ryerson & Son, Inc. and will also be used to repay outstanding debt under the company's senior secured asset-based revolving credit facility.

Ryerson Holdings said it will fund its tender offer with a dividend from Ryerson of a portion of the net proceeds received in the new notes offering.

The completion of the tender offers is contingent on the closing of the new note offers, the dividend payment to Ryerson Holdings and other customary conditions.

Global Bondholder Services Corp. (212 430-3774 or 866 736-2200) is the information agent for the offers. Bank of America Merrill Lynch (980 387-3907 or 888 292-0070) is the dealer manager and solicitation agent.

Ryerson is a Chicago-based processor and distributor of metals including stainless and carbon steel and aluminum products. It began the offer on Sept. 25.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.