Zekelman to redeem 8¼% notes with proceeds from new financings

New York, June 6 – Zekelman Industries, Inc. said that it plans to redeem its outstanding 8¼% senior notes due 2018 using the proceeds of new bond and loan financings.

The company announced a $425 million offering of senior secured notes due 2023 on Monday morning and previously disclosed an amendment to reduce its asset-based credit facility to $350 million and an amendment and restatement of its term loan to extend the maturity to 2021 and increase borrowings to $800 million with a $371 million incremental term loan.

Proceeds of the additional term loan along with cash on hand will be used to fund the note redemption.

Zekelman, formerly known as JMC Steel Group, Inc., is a Chicago-based maker of steel pipe and tube products.

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