Metals USA $450 million credit facility to launch Tuesday

By Sara Rosenberg

New York, Oct. 27 - Metals USA Inc. is scheduled to hold a bank meeting on Tuesday to launch its proposed $450 million asset-based six-year revolving credit facility, according to a syndicate document.

Credit Suisse First Boston and Bank of America are joint lead arrangers on the deal.

The revolver contains two tranches - a $415 million first-out tranche talked at Libor plus 150 basis points and a $35 million last-out tranche talked at Libor plus 375 bps, the document said. The last-out tranche is drawn down first and in a credit event, lenders under this tranche get paid after the first-out lenders.

There is a 25 bps commitment fee on the deal.

Proceeds from the credit facility will be used to help finance Apollo Management LP's acquisition of the company.

Metals USA is a Houston-based metals processor and distributor.

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