RUSSEL METALS EXTENDS AND AMENDS CREDIT FACILITIES

Rhea-AI Summary

Russel Metals has successfully extended and amended its credit facilities, marking significant improvements in its debt structure. The company has extended its $400 million revolving credit facility and $50 million letters of credit facility to April 30, 2029.

Key developments include:

• Removal of the springing lien provision
• Maintenance of unsecured facilities with no borrowing base restrictions
• Continuation of investment grade financial covenants
• Cancellation of $150 million sidecar bank facility following a $300 million issuance of 4.423% Notes due in 2030

According to CFO Martin L. Juravsky, these changes provide Russel with significant liquidity, flexible financial covenants, and low-cost term debt without financial covenants, supporting the company's ongoing strategic initiatives.

Positive

• Extended $400M revolving credit and $50M letters of credit facilities to April 2029
• Removed springing lien provision, maintaining unsecured status with no borrowing base restrictions
• Successfully completed $300M Notes issuance at 4.423% due 2030
• Maintains investment grade financial covenants
• Significant liquidity position with flexible financial covenants

Negative

• Cancelled $150M sidecar bank facility that was due in 2026

News Market Reaction

+3.38%

1 alert

+3.38% News Effect

On the day this news was published, RUSMF gained 3.38%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

• EXTENDED MATURITIES ON $450 MILLION OF FACILITIES TO APRIL 2029
• REMOVED SPRINGING LIEN PROVISION
• CANCELLED $150 MILLION SHORT TERM SIDECAR FACILITY

TORONTO, April 29, 2025 /PRNewswire/ - Russel Metals Inc. (TSX: RUS) announces that it has extended its $400 million revolving credit facility and $50 million letters of credit facility to April 30, 2029.  In addition, the facilities were amended to remove the springing lien provision.  The facilities remain unsecured with no borrowing base restrictions and investment grade financial covenants.  In addition, as a result of the recently completed $300 million issuance of 4.423% Notes due in 2030, Russel has cancelled its $150 million sidecar bank facility that was set to expire in 2026.

Martin L. Juravsky, Executive Vice President and CFO of Russel commented, "The recently completed $300 million term debt offering, in conjunction with this extension and amendment of the bank agreement, are further milestones in the evolution of our debt structure.  We have significant liquidity, flexible financial covenants in our bank agreement, and a low-cost source of term debt with no financial covenants which should allow us to continue with our strategic initiatives."

About Russel Metals Inc.
Russel Metals is one of the largest metals distribution companies in North America, with a growing focus on value added processing.  It carries on business in three segments: metals service centers, energy field stores 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 filed stores carry a specialized product line focused on the needs of energy industry customers.  Its steel distributors act as master distributors selling steel in large volumes to other steel service centers and large equipment manufacturers mainly on an "as is" basis.

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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 relating to, among other things, the anticipated benefits of the financing.  Forward-looking statements are often, but not always, identified by the use of words such as "expect", "may", "will", "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.

While we believe that the expectations reflected in our forward-looking statements are reasonable, no assurance can be given that these expectations will prove to be correct, and our forward-looking statements included in this press release should not be unduly relied upon.  These statements speak only as of the date of this press release and, except as required by law, we do not assume any obligation to update our forward-looking statements.

FAQ

What are the key terms of Russel Metals (RUSMF) credit facility extension in April 2029?

Russel Metals extended its $400 million revolving credit facility and $50 million letters of credit facility to April 30, 2029. The facilities are unsecured, have no borrowing base restrictions, and maintain investment grade financial covenants.

How much did Russel Metals (RUSMF) raise in Notes, and what is the interest rate?

Russel Metals completed a $300 million issuance of Notes with a 4.423% interest rate, due in 2030.

What happened to Russel Metals (RUSMF) $150 million sidecar facility?

Russel Metals cancelled its $150 million sidecar bank facility that was set to expire in 2026, following the completion of their $300 million Notes issuance.

What changes were made to Russel Metals (RUSMF) credit facilities in 2025?

In April 2025, Russel Metals removed the springing lien provision from their facilities, extended maturities on $450 million of facilities to 2029, and cancelled their $150 million short-term sidecar facility.

How does the 2025 debt restructuring benefit Russel Metals (RUSMF)?

The restructuring provides Russel Metals with significant liquidity, flexible financial covenants, and a low-cost source of term debt with no financial covenants, enabling them to pursue strategic initiatives.