Metals USA, Inc. received commitments for and intends to enter into a new seven-year senior secured term loan in the amount of $225 million.  The new term loan is expected to bear interest at LIBOR plus 5.0%, and includes a 1.25% LIBOR floor and 1% of original issue discount.  The interest rate is expected to be 6.25% at the closing of the term loan, compared to an interest rate of 11 1/8% on Metals USA's outstanding Senior Secured Notes due 2015 (the "Notes").  The proceeds of the term loan will be used to refinance the Notes.  Redemption of the Notes will occur on December 14, 2012 pursuant to the notice of redemption that has been issued to holders of the Notes.

Lourenco Goncalves, Metals USA's Chairman, President and C.E.O., stated: "Metals USA is pleased to benefit from the current attractive condition of the credit markets and successfully conclude the refinancing of our Notes on favorable terms.  This cost effective and leverage neutral transaction extends the maturity of our debt, further strengthens our balance sheet and lowers our overall cost of capital.  We anticipate that this refinancing will reduce our annual cash interest expense by approximately $10 million, resulting in a significant positive impact to free cash flow and a meaningful increase in annual pro forma earnings per share."

Metals USA provides a wide range of products and services in the heavy carbon steel, flat-rolled steel, non-ferrous metals, and building products markets.