Reliance Steel & Aluminum Co. announced that it entered into a new credit agreement
OREANDA-NEWS. Reliance Steel & Aluminum Co. (NYSE:RS) announced today that on September 30, 2016 it entered into a new credit agreement comprised of a $1.5 billion unsecured revolving credit facility and a $600 million unsecured term loan. The new credit agreement, which has a term of five years, replaces the Company's existing credit agreement. Both facilities allow for prepayments, and the credit agreement includes an option to increase the revolving credit facility for up to an additional $500 million. The terms of the new credit agreement are substantially consistent with the existing credit agreement. The Company intends to use proceeds from the revolving credit facility to retire $350 million of 6.2% senior unsecured notes when they mature on November 15, 2016.
Bank of America N.A. is the Administrative Agent and JPMorgan Chase Bank, N.A. and Wells Fargo Bank, National Association are Co-Syndication Agents.
About Reliance Steel & Aluminum Co.
Reliance Steel & Aluminum Co., headquartered in Los Angeles, California, is the largest metals service center company in North America. Through a network of more than 300 locations in 40 states and twelve countries outside of the United States, the Company provides value-added metals processing services and distributes a full line of over 100,000 metal products to more than 125,000 customers in a broad range of industries. Reliance focuses on small orders with quick turnaround and increasing levels of value-added processing. In 2015, Reliance's average order size was $1,660, approximately 47% of orders included value-added processing and approximately 40% of orders were delivered within 24 hours.