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TORONTO, Oct. 13, 2020 /CNW/ - Russel Metals Inc.
(TSX: RUS) announced today that it has entered into an underwriting
agreement to sell, on a private placement basis in Canada, $150
million aggregate principal amount of 5.75% Senior Unsecured
Notes due 2025 (the "2025 Notes"). The 2025 Notes will be
senior unsecured obligations of Russel Metals ranking equally with
all of its other present and future senior unsecured
indebtedness.
Russel Metals intends to use the net proceeds of the offering to
fund, in part, the repayment of its 6% senior unsecured notes due
April 19, 2022 (the "2022
Notes"). As previously announced, Russel Metals will redeem
$150 million principal amount of its
2022 Notes on November 5, 2020.
Russel Metals today gave notice, conditional upon the closing of
the offering of the 2025 Notes, to redeem on November 12, 2020 the remaining $150 million principal amount of its 2022 Notes
at a price equal to 100% of their aggregate principal amount, plus
accrued and unpaid interest thereon to the date on which they are
redeemed.
The offering of the 2025 Notes is expected to close on or about
October 27, 2020, subject to
customary closing conditions. RBC Capital Markets is acting
as sole book runner and lead manager for the offering of
the 2025 Notes, with an underwriting syndicate that includes Scotia
Capital Inc., Laurentian Bank Securities Inc., BMO Nesbitt Burns
Inc., Raymond James Ltd., Stifel Nicolaus Canada Inc., and TD
Securities Inc.
Martin L. Juravsky, Executive
Vice President and CFO commented, "The combination of the new notes
and the redemption of the existing notes will extend our debt
maturities and further reduce our interest expense."
The 2025 Notes were offered on a private placement basis in each
of the provinces of Canada. The 2025 Notes were not
offered to investors outside of Canada. This announcement
does not constitute an offer to sell or the solicitation of an
offer to buy any security.
About Russel Metals
Russel Metals is one of the largest metals distribution
companies in North America. It carries on business in
three metals distribution segments: metals service centers, energy
products and steel distributors. Its network of metals
service centers carries an extensive line of metal products in a
wide range of sizes, shapes and specifications, including carbon
hot rolled and cold finished steel, pipe and tubular products,
stainless steel, aluminum and other non-ferrous specialty
metals. Its energy products operations carry a specialized
product line focused on the needs of energy industry
customers. Its steel distributors operations act as master
distributors selling steel in large volumes to other steel service
centers and large equipment manufacturers mainly on an "as is"
basis.
Cautionary Statement on Forward-Looking Information
Certain statements contained in this press release constitute
forward-looking statements or information within the meaning of
applicable securities laws, including statements as to the expected
timing of the closing of the offering and Russel
Metals' anticipated use of proceeds of the
offering. Forward-looking statements relate to future events
or Russel Metals' future performance. All
statements, other than statements of historical fact, are
forward-looking statements. Forward-looking statements are
often, but not always, identified by the use of words such as
"seek", "anticipate", "plan", "continue", "estimate", "expect",
"may", "will", "project", "predict", "potential", "targeting",
"intend", "could", "might", "should", "believe" and similar
expressions. Forward-looking statements are necessarily based on
estimates and assumptions that, while considered reasonable by us,
inherently involve known and unknown risks, uncertainties and other
factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking
statements, including the factors described below.
The offering of the 2025 Notes are subject to various
conditions and there are no assurances that the offering will be
completed or that the terms of the offering will not be
modified. Russel Metals disclaims any intention or obligation
to update any forward-looking statements, except as required by
law, even if new information becomes available, as a result of
future events or for any other reason.
If you would like to unsubscribe from receiving Press
Releases, you may do so by emailing info@russelmetals.com; or by
calling our Investor Relations Line: 905-816-5178.
SOURCE Russel Metals Inc.