Metals USA, Inc a wholly owned subsidiary of Metals USA Holdings Corp announced that it has entered into a new seven year senior secured term loan in the amount of USD 225 million and has redeemed all USD 226.3 million of its outstanding 11 1/8% Senior Secured Notes due 2015.
The new term loan bears interest at LIBOR plus 5.0%, and includes a 1.25% LIBOR floor and 1% of original issue discount. The interest rate is 6.25% at the closing of the term loan compared to an interest rate of 11 1/8% on the Notes. Metals USA projects the refinancing will reduce annual cash interest expense by approximately $10 million, which is expected to generate positive impacts to both free cash flow and annual pro forma earnings per share.
Source:
http://www.steelguru.com/international_news/Metals_USA_announces_completion_of_new_term_loan_debt/295350.html
