Russel Metals has renewed and extended its credit facility with a syndicate of banks led by RBC Capital Markets. The new credit facility has total availability of $600 million and is comprised of:
- A $400 million revolving credit facility with a maturity of July 2028
- A $50 million letters of credit facility with a maturity of July 2028
- A $150 million revolving credit facility with a maturity of July 2026
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The facility’s total availability increased by $150 million, is unsecured with no borrowing base restrictions and includes more flexible investment grade type financial covenants.
“Over the past several years, we have re-engineered our business portfolio as we repatriated approximately $400 million of capital from underperforming business units and reinvested in our core operations. This portfolio evolution has occurred in conjunction with strong free cash flow generation, such that we now have the strongest capital structure in Russel’s history,” Martin L. Juravsky, executive vice president and CFO of Russel, said. “As a result, we have improved from a non-investment grade credit to an investment grade type company. As we have progressed through this multi-year journey, we are pleased to have the support of our long-standing and new bank partners. With the modernization of our bank structure, we will have greater flexibility as we continue with our growth initiatives.”
