Olympic Steel to repay some bank debt with stock sale proceeds

By Sara Rosenberg

New York, Aug. 27 - Olympic Steel Inc. plans to repay a portion of its outstanding bank debt with proceeds from a proposed offering of 2.25 million shares of common stock, according to an S-3 filed with the Securities and Exchange Commission Friday.

The Bedford Heights, Ohio, steel service center had $86.4 million outstanding under its credit facility as of June 30.

The facility matures Dec. 15, 2006. The effective interest rate on borrowings for the first six months of this year was 5.9%.

"This repayment will strengthen our balance sheet and enhance our abilities to make growth-oriented investments," the filing said.

Remaining proceeds from the stock sale will be available for general corporate purposes.

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