Reliance Steel and Aluminum Co. 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 percent senior unsecured notes when they mature on November 15, 2016.
"We are pleased to announce our new credit agreement which provides ample liquidity to support our ongoing growth, extends our debt maturities, and will provide meaningful interest expense savings when we pay off our 6.2 percent senior notes," said Gregg Mollins, President and Chief Executive Officer of Reliance. "We appreciate the continued support of the syndicate of twelve banks participating in our credit facilities."