PRESS RELEASE DATED 1/14/97
Published on
FOR IMMEDIATE RELEASE CONTACT: David H. Hannah
President
(213) 582-2272
Kim P. Feazle
Hill and Knowlton, Inc.
(213) 966-5721
RELIANCE STEEL & ALUMINUM CO. COMPLETES DEBT FINANCING
Los Angeles, CA -- January 14, 1997 -- Reliance Steel & Aluminum Co.
(NYSE:RS) announced today that it has issued $75 million in senior unsecured
notes in a private placement. The notes mature at various dates during the
period January 2, 2004 to January 2, 2009 at an average interest rate of 7.22%.
The proceeds were used to pay off bank debt and the promissory notes issued
October 1, 1996 by Reliance in connection with the acquisition of Siskin Steel &
Supply Company, Inc., a metals service center company based in Chattanooga,
Tennessee. Siskin also has facilities in Nashville, Tennessee, Spartanburg,
South Carolina and Birmingham, Alabama. Revenues for Siskin for the fiscal year
ended June 30, 1996 were approximately $151 million.
"We are pleased with the quality of the financing group and the rates,
terms and conditions of the note agreement with the lenders, consisting of eight
insurance companies," said David H. Hannah, president of Reliance. "We have
historically maintained a balance between short-term variable rate and longer
term fixed rate debt. This was an opportune time for us to take advantage of
lower long-term interest rates. The Siskin acquisition provides us with a solid
position in a new geographic area of the country and will immediately add to our
earnings."
Reliance Steel & Aluminum Co., headquartered in Los Angeles,
California, is one of the largest metals service center companies in the United
States. Through a network of 34 metals service centers in 13 states, and Canada,
including Siskin Steel & Supply Company, Inc., CCC Steel, Inc. and Reliance's
50% owned and operationally controlled company, American Steel, L.L.C., the
Company provides value-added metals processing services and distributes a full
line of over 20,000 metal products. These products include galvanized,
hot-rolled and cold-finished steel; stainless steel; aluminum; brass; copper and
alloy steel to more than 30,000 customers in various industries. Valex Corp., a
wholly-owned subsidiary, is a leading domestic manufacturer and international
distributor of electropolished stainless steel tubing and fittings for use in
the construction and maintenance of semiconductor manufacturing plants.