Reliance Gets $2 Billion Credit Deal to Back AcquisitionFriday, April 5, 2013
L.A.’s Reliance Steel & Aluminum Co. on Friday announced a $2 billion financing deal for its acquisition of Metals USA Holding Corp.
The financing includes a $500 million loan and a $1.5 billion credit line. Reliance, the largest metals service center company in North America, has the option to increase the revolving credit line by $500 million. The credit agreement has a term of five years, Reliance said Friday in a press release.
The company in February announced it would acquire Fort Lauderdale, Fla., rival Metals USA for $766 million. The acquisition adds 48 distribution centers for the company and is expected to close this year.
“These financing transactions are a significant step in obtaining the financing necessary to complete our previously announced acquisition of Metals USA,” David Hannah, Reliance chief executive, said in a statement.
Shares of Reliance, which trade on the New York Stock Exchange, rose 1.9 percent to $67.71.