Metals USA launches $300 million seven-year floaters via UBS

By Paul A. Harris

St. Louis, June 20 - Metals USA Holdings Corp. launched a $300 million offering of seven-year senior floating-rate toggle notes on Wednesday, according to an informed source.

UBS Investment Bank is leading the offering of notes, which will be sold via Rule 144A and Regulation S with registration rights.

The notes, which will price at an original issue discount of 99, will be non-callable for six months, after which they will become callable at 102.

The coupon will step up by 75 basis points if the issuer elects to make and in-kind, as opposed to cash, interest payment.

Proceeds will be used to redeem the 2006 holding company notes, to pay a cash dividend to stockholders and to make a special cash payment to stock option holders.

Metals USA is a Houston-based metals services provider.

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