JMC Steel Group announced a change of its corporate name and identity to Zekelman Industries Inc. The change is being made to better reflect the nature of the company’s value added production capabilities as well as to recognize the three decades of leadership by the company’s owners, the Zekelman family. The company will continue to operate its individual business units under the Atlas Tube, Wheatland Tube, Sharon Tube and Picoma brand names. The corporate identity change will be effected in the coming weeks.
In addition, the company also announced that it intends to amend its existing senior secured asset-based credit facility, to, among other things, reduce availability to $350 million and amend and restate its existing senior secured term facility, including extending the maturity by four years and increasing the borrowing capacity under a new $371 million incremental term loan, increasing the total term loan borrowings to an aggregate of $800 million. The company also expects to commence an offering of $425 million in aggregate principal amount of senior secured notes due 2023 (the “Notes”) in a private placement exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), subject to revisions based on market conditions and other factors at the time of the offering. Estimated completion of the transaction is expected to be during the company’s third fiscal quarter. The company expects to use borrowings of approximately $371 million under the company’s amended and restated senior secured term loan facility along with cash on hand and the proceeds from the offering of the Notes, to fund the redemption of all of the company’s outstanding 8.25% Senior Notes due 2018, pay related transaction fees and expenses and for general corporate purposes.
Zekelman Industries
www.jmcsteel.com
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