Ryerson Enters Into a New Credit Facility, Reducing Interest Rate and Extending Maturity

CHICAGO, July 29, 2015 /PRNewswire/ -- Ryerson Holding Corporation (NYSE: RYI) announced today that it entered into a new $1 billion credit facility secured primarily by the inventory and accounts receivables of the company's U.S. and Canadian operating subsidiaries, replacing its previous credit facility. Ryerson has used the new facility to repay its previous facility and intends to use the new facility for general corporate purposes, which may include working capital needs, capital expenditures, funding of possible acquisitions, and satisfaction of other obligations of the company.

The new credit facility has a maturity date of the earlier of July 24, 2020 or 60 days prior to the stated maturity of any outstanding indebtedness with a principal amount of $50 million or more. Under the new agreement, the total credit facility size was reduced to $1 billion, the interest rate on current outstanding borrowings decreased 50 basis points, and commitment fees on amounts not borrowed were reduced 12.5 basis points, as compared to the prior credit facility. The credit facility also includes a swing line and a letter of credit facility.

"Ryerson's strong banking relationships and continuing transformation momentum allowed us to take advantage of favorable asset-based lending market conditions to lower our interest rate and extend the maturity date," stated Erich Schnaufer, Ryerson's interim chief financial officer. "This opportunistic refinancing will reduce our borrowing costs while maintaining the ability to draw funds as needed to further the next leg of the company's transformation."

About Ryerson
Ryerson is a processor and distributor of metals with operations in the United States, Mexico, Canada, China and Brazil. The company serves a variety of industries, including customers making products or equipment for construction, packaging, oil and gas and truck trailers. Founded in 1842, Ryerson is headquartered in the United States and employs approximately 3,700 employees in more than 100 locations. For more information, visit www.ryerson.com.

Forward-Looking Statements
Certain statements made in this press release and other written or oral statements made by or on behalf of the company constitute "forward-looking statements" within the meaning of the federal securities laws, including statements regarding our future performance, as well as management's expectations, beliefs, intentions, plans, estimates or projections relating to the future. Such statements can be identified by the use of forward-looking terminology such as "believes," "expects," "may," "estimates," "will," "should," "plans" or "anticipates" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy. The company cautions that any such forward-looking statements are not guarantees of future performance and may involve significant risks and uncertainties, and that actual results may vary materially from those in the forward-looking statements as a result of various factors. Among the factors that significantly impact the metals distribution industry and our business are: the cyclicality of our business; the highly competitive and fragmented market in which we operate; fluctuating metal prices; our substantial indebtedness and the covenants in instruments governing such indebtedness; the integration of acquired operations; regulatory and other operational risks associated with our operations located inside and outside of the United States; work stoppages; obligations regarding certain employee retirement benefit plans; the ownership of a majority of our equity securities by a single investor group; currency fluctuations; and consolidation in the metals producer industry.  Forward-looking statements should, therefore, be considered in light of various factors, including those set forth above and those set forth under "Risk Factors" in our annual report on Form 10-K for the year ended December 31, 2014 and in our other filings with the Securities and Exchange Commission. Moreover, we caution against placing undue reliance on these statements, which speak only as of the date they were made. The company does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events or circumstances, new information or otherwise.

 

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SOURCE Ryerson Holding Corporation

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