Ryerson Announces Sale-Leaseback Transaction and Partial Senior Secured Notes Redemption
CHICAGO, June 10, 2021 /PRNewswire/ -- Ryerson Holding Corporation (NYSE: RYI), a leading value-added processor and distributor of industrial metals, announced today that it has closed a purchase and sale agreement, pursuant to which Ryerson sold properties located in Delaware, Florida, Kentucky, Minnesota, Missouri, Oklahoma, Pennsylvania, Tennessee, Texas and Virginia. The sale price for the eleven properties totaled approximately $107 million. In connection with the purchase agreement, the Company entered into lease agreements for each property.
The Company will utilize proceeds from this sale-leaseback transaction to redeem $100 million of its outstanding 8.50% Senior Secured Notes due 2028 as allowed under the Company's optional redemption features secured in the July 2020 bond issuance at a redemption price in cash of 104.0% of the principal amount of the Notes, plus accrued interest. The Company expects to notice bondholders of the redemption immediately after transaction closing with the note redemption scheduled to occur on July 9, 2021.
Eddie Lehner, Ryerson's President and Chief Executive Officer said, "We are pleased to announce the completion of this sale lease-back transaction and the exercising of our special redemption right to redeem $100 million of our outstanding Senior Secured Notes. This transaction highlights and evidences Ryerson's continuing efforts to strengthen its balance sheet while beneficiating its assets to their highest and best use. Additionally, the redemption marks the second exercise of the Company's optional Senior Secured Notes repurchase features within the past twelve months as permitted under the Company's bond indenture. These actions further evidence Ryerson's stated plans to accelerate deleveraging of the balance sheet while catalyzing and effecting recognition and realization of an enterprise value shift from debt to equity."
Ryerson is a leading value-added processor and distributor of industrial metals, with operations in the United States, Canada, Mexico, and China. Founded in 1842, Ryerson has around 3,900 employees in approximately 100 locations. Visit Ryerson at www.ryerson.com.
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SOURCE Ryerson Holding Corporation
Company Codes: NYSE:RYI
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