Russel Metals to Redeem All of its 6% Senior Unsecured Notes

By Adriano Marchese

Russel Metals said Tuesday that it plans to redeem all of its outstanding 6% senior unsecured notes using the company's cash on hand as it looks to improve its debt structure.

The Canadian metals distribution company said it will redeem the notes at a price equal to the full amount of the aggregate principal plus the accrued and unpaid interest on it.

Russel Metals said the redemption represents all of the original 150 million Canadian dollars ($110.5 million), and will be redeemed using cash on hand. The compay had $629 million of cash and cash equivalents as of Dec. 31.

Chief Financial Officer Martin Juravsky said the redemption will substantially reduce Russel's interest expense while maintaining strong ongoing liquidity and that it sets the stage for other debt structure improvements.

Write to Adriano Marchese at [e-mail]

(END) Dow Jones Newswires

04-02-24 0804ET