Rhombus Merger Corporation Announces Tender Offer and Consent Solicitation for the 8.250% Senior Notes Due 2011 of Ryerson Inc.
21 September 2007 - 5:53PM
PR Newswire (US)
CHICAGO, Sept. 21 /PRNewswire/ -- Rhombus Merger Corporation (the
"Purchaser"), a wholly owned subsidiary of Rhombus Holding
Corporation ("Parent"), has commenced a cash tender offer and
consent solicitation (together, the "Offer") for any and all of the
$150,000,000 aggregate principal amount of 8.250% Senior Notes due
2011 of Ryerson Inc. ("Ryerson") (CUSIP No. 78375PAG2) (the
"Notes"). Merger Sub was formed solely for the purpose of merging
with and into Ryerson, which will be the surviving corporation of
the merger and a wholly owned subsidiary of Parent. In connection
with the Offer, the Purchaser is soliciting consents to certain
proposed amendments to eliminate substantially all of the
restrictive covenants, certain events of default and related
provisions in the indenture governing the Notes. Holders may not
tender their Notes without delivering consents or deliver consents
without tendering their Notes. Holders who validly tender their
Notes prior to 5:00 p.m., New York City time on October 4, 2007
(such date, as it may be extended, the "Consent Payment Deadline")
and such Notes are accepted for payment by the Purchaser will
receive the Total Consideration (as discussed below) per $1,000
principal amount of Notes and accrued and unpaid interest up to,
but not including, the initial payment date, which is expected to
be October 19, 2007 (the "Initial Payment Date"). Holders who
tender their Notes after the Consent Payment Deadline but on or
prior to 8:00 a.m., New York City time on October 22, 2007 (the
"Expiration Date", unless extended) will receive the Total
Consideration per $1,000 principal amount of Notes validly tendered
and not withdrawn, less the consent payment of $30.00 per $1,000
principal amount of Notes. The following table summarizes terms
material to the determination of the Total Consideration to be
received in the Offer per $1,000 principal amount of Notes validly
tendered and not withdrawn prior to the Consent Payment Deadline:
CUSIP No. Outstanding Note First Redemp- First Redemp- Aggregate
Descrip- tion Date tion Price Principal tion per $1,000 Amount
Principal Amount 78375PAG2 $150,000,000 8.250% 12/15/08 $1,041.25
Senior Notes Due 2011 Consent Payment Reference Reference Page
Fixed Spread per $1,000 Security Principal Amount $30.00 3.375%
U.S.T. PX4 50 bps due 12/15/08 The Total Consideration per $1,000
principal amount of Notes validly tendered and not withdrawn prior
to the Consent Payment Deadline will be calculated based on the
present value on the payment date of the sum of the First
Redemption Price on the First Redemption Date plus interest
payments through the First Redemption Date, determined using a
discount factor equal to the yield on the Price Determination Date
(as defined below) of the Reference Security plus a fixed spread of
50 basis points. The Purchaser expects that the Price Determination
Date will be 2:00 p.m., New York City time on a date that is at
least ten business days prior to the Expiration Date. The
Purchaser's obligation to accept for purchase, and to pay for,
Notes validly tendered pursuant to the Offer is subject to the
satisfaction of certain conditions including: (1) receipt of
tenders from holders of at least a majority in aggregate principal
amount of the outstanding Notes, and the execution of the
supplemental indenture, (2) the consummation of the merger of
Purchaser with and into Ryerson, (3) concurrent financing and (4)
certain other customary conditions. The complete terms and
conditions of the Offer is described in the Offer to Purchase and
Consent Solicitation Statement dated September 21, 2007 (the "Offer
to Purchase"), and copies of which may be obtained by contacting
Global Bondholder Services Corporation, the information agent for
the Offer, at (212) 430-3774 (collect) or (866) 807-2200 (U.S.
toll-free). Banc of America Securities LLC is the exclusive dealer
manager and solicitation agent for the Offer. Additional
information concerning the Offer may be obtained by contacting Banc
of America Securities LLC, High Yield Special Products, at (704)
388-9217 (collect) or (888) 292-0070 (U.S. toll-free). This press
release is not an offer to purchase, a solicitation of an offer to
purchase or a solicitation of consents with respect to any
securities. The Offer is being made solely pursuant to the Offer to
Purchase and related Letter of Transmittal. DATASOURCE: Ryerson
Inc. CONTACT: Banc of America Securities LLC, 1-888-292-0070,
collect, +1-704-388-9217, for Ryerson Inc.
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