Russel Metals Inc. Announces Consent Solicitation For Its 10%
2001-03-09 15:08 (New York)
Senior Notes Due June 1, 2009
Business Editors
TORONTO--(BUSINESS WIRE)--March 9, 2001--Russel Metals Inc.
(TSE:RUS.)(TSE:RUS.PR.C.) announced today that it intends to commence
a consent solicitation to amend the Indenture with respect to its 10%
US $125 million Senior Notes due June 1, 2009.
Brian Hedges, Executive Vice President and CFO stated, "Our Notes
have outperformed comparable bonds in the metals sector since
issuance, reflecting Russel Metals' improved interest coverage ratios
and strong cash flows. Russel Metals has judiciously made use of
excess cash flow to repurchase shares in order to maintain an optimal
capital structure for all stakeholders. Russel Metals is soliciting
consents to establish an additional US $25 million of Restricted
Payment availability for repurchases of common and preferred shares
and the payment of common dividends".
Consents will be made on the terms and subject to the conditions
of a Consent Solicitation Statement that Russel will provide to the
holders of the Notes. If holders of more than 50% of the outstanding
Senior Notes give their consent, the amendment will be binding on all
holders of the Notes. Russel Metals intends to offer a consent fee to
each holder of the Notes who validly delivers and does not revoke its
consent. Requests for information should be directed to the Company
representatives Brian Hedges or Lesley Coleman at (905) 819-7777.
Russel Metals is one of the largest metals distribution companies
in North America. It carries on business in three metals distribution
segments: service center, energy sector and import/export, under
various names including Russel Metals, B&T Steel, Bahcall Group,
Baldwin International, Comco Pipe and Supply, Drummond McCall, Fedmet
Tubulars, Metaux Russel, Pioneer Pipe, Sunbelt Group, Total
Distributors, Triumph Tubular & Supply and Wirth Steel.
--30--jsk/in*
CONTACT: Russel Metals Inc.
Brian R. Hedges, 905/819-7401
info@russelmetals.com
www.russelmetals.com |
