Reliance, Inc. Announces Amended and Restated $1.5 Billion Credit Facility
Reliance (NYSE: RS) has secured an amended and restated $1.5 billion five-year unsecured revolving credit facility, effective September 10, 2024. The company plans to use the funds for general corporate purposes, growth, and stockholder return activities. CEO Karla Lewis highlighted that Reliance's improved financial condition and upgraded credit ratings since 2020 have led to more favorable pricing and fewer restrictive covenants. The new facility is expected to strengthen Reliance's liquidity position and enhance its capacity to pursue capital allocation priorities. Bank of America N.A. serves as the Administrative Agent, with JPMorgan Chase and Wells Fargo as Co-Syndication Agents, and PNC Bank and Toronto-Dominion Bank as Co-Documentation Agents.
Reliance (NYSE: RS) ha ottenuto una linea di credito revolving non garantita da $1,5 miliardi ristrutturata e modificata con durata di cinque anni, efficace dal 10 settembre 2024. L'azienda prevede di utilizzare i fondi per scopi aziendali generali, crescita e attività di ritorno per gli azionisti. L'amministratore delegato Karla Lewis ha evidenziato che il miglioramento della situazione finanziaria di Reliance e il rialzo dei rating creditizi dal 2020 hanno portato a una maggiore favorevolezza nei prezzi e a clausole meno restrittive. La nuova linea di credito dovrebbe rafforzare la posizione di liquidità di Reliance e migliorare la sua capacità di perseguire le priorità di allocazione del capitale. Bank of America N.A. funge da Agente Amministrativo, con JPMorgan Chase e Wells Fargo come Co-Agenti di Syndication, e PNC Bank e Toronto-Dominion Bank come Co-Agenti di Documentazione.
Reliance (NYSE: RS) ha asegurado un crédito revolvente sin garantía de $1.5 mil millones reestructurado y modificado con un plazo de cinco años, que entrará en vigor el 10 de septiembre de 2024. La empresa planea utilizar los fondos para fines corporativos generales, crecimiento y actividades de retorno para los accionistas. La CEO Karla Lewis destacó que la mejora en la condición financiera de Reliance y la actualización de sus calificaciones crediticias desde 2020 han llevado a precios más favorables y a restricciones menos severas. Se espera que la nueva instalación fortalezca la posición de liquidez de Reliance y mejore su capacidad para perseguir prioridades de asignación de capital. Bank of America N.A. actúa como Agente Administrativo, con JPMorgan Chase y Wells Fargo como Co-Agentes de Sindicación, y PNC Bank y Toronto-Dominion Bank como Co-Agentes de Documentación.
Reliance (NYSE: RS)은 50억 달러의 무담보 회전 신용 시설을 수정 및 개정하여 확보하였습니다, 2024년 9월 10일부터 시행됩니다. 회사는 이 자금을 일반 기업 목적, 성장 및 주주 환원 활동에 사용할 계획입니다. CEO Karla Lewis는 2020년 이후 Reliance의 재정 상태 개선과 신용 등급 상승이 보다 유리한 가격과 덜 제한적인 계약 조건으로 이어졌다고 강조했습니다. 새로운 시설은 Reliance의 유동성 위치를 강화하고 자본 배분 우선 순위를 추구할 수 있는 능력을 향상시킬 것으로 기대됩니다. Bank of America N.A.가 행정 에이전트로, JPMorgan Chase와 Wells Fargo가 공동 배급 에이전트로, PNC Bank와 Toronto-Dominion Bank가 공동 문서 에이전트로 활동합니다.
Reliance (NYSE: RS) a sécurisé une ligne de crédit renouvelable non garantie de 1,5 milliard de dollars, amendée et révisée, valable pour cinq ans, à compter du 10 septembre 2024. L'entreprise prévoit d'utiliser les fonds à des fins corporatives générales, pour la croissance et des activités de retour aux actionnaires. La PDG Karla Lewis a souligné que l'amélioration de la situation financière de Reliance et l'augmentation des notations de crédit depuis 2020 ont conduit à des prix plus favorables et à des engagements moins restrictifs. La nouvelle installation devrait renforcer la position de liquidité de Reliance et améliorer sa capacité à poursuivre ses priorités d'allocation de capital. Bank of America N.A. sert d'agent administratif, avec JPMorgan Chase et Wells Fargo comme co-agents de syndication, et PNC Bank et Toronto-Dominion Bank comme co-agents de documentation.
Reliance (NYSE: RS) hat eine eine geänderte und erneuerte unbesicherte revolvierende Kreditfazilität über 1,5 Milliarden Dollar mit einer Laufzeit von fünf Jahren gesichert, die am 10. September 2024 in Kraft tritt. Das Unternehmen plant, die Mittel für allgemeine Unternehmenszwecke, Wachstum und Aktivitäten zur Rückführung von Aktionären zu verwenden. CEO Karla Lewis hob hervor, dass die verbesserte finanzielle Lage von Reliance und die aufgewerteten Kreditratings seit 2020 zu günstigeren Preisen und weniger restriktiven Auflagen geführt haben. Es wird erwartet, dass die neue Fazilität die Liquiditätslage von Reliance stärkt und ihre Fähigkeit zur Verfolgung von Kapitalallokationsprioritäten verbessert. Bank of America N.A. fungiert als Verwaltungsagent, mit JPMorgan Chase und Wells Fargo als Co-Syndikationsagenten sowie PNC Bank und Toronto-Dominion Bank als Co-Dokumentationsagenten.
- Secured a $1.5 billion five-year unsecured revolving credit facility
- Improved financial condition and upgraded credit ratings since 2020
- More favorable pricing and fewer restrictive covenants on the new facility
- Enhanced capacity to pursue capital allocation priorities
- None.
Insights
Reliance's amended
The involvement of major banks as lead arrangers suggests strong confidence in Reliance's financial health. This unsecured revolving credit line offers the company significant operational freedom, potentially allowing for quick capital deployment in acquisitions, expansions, or stock buybacks. Investors should view this as a positive sign of Reliance's financial stability and growth prospects in the coming years.
Reliance's new credit facility aligns perfectly with its strategic objectives. The emphasis on "general corporate purposes, growth and stockholder return activities" indicates a balanced approach to capital allocation. This facility provides Reliance with the financial firepower to pursue opportunistic acquisitions, invest in organic growth initiatives and maintain a shareholder-friendly capital return policy.
The improved terms of the facility, particularly the reduction in restrictive covenants, give management greater operational flexibility. This could be especially valuable in a dynamic market environment, allowing Reliance to respond swiftly to emerging opportunities or challenges. The five-year duration also provides a stable financial foundation for medium-term strategic planning, potentially enabling more ambitious growth initiatives.
SCOTTSDALE, Ariz., Sept. 16, 2024 (GLOBE NEWSWIRE) -- Reliance, Inc. (NYSE: RS) announced today that effective September 10, 2024, it has entered into an amended and restated
“We are very pleased with the terms achieved for this new credit facility,” said Karla Lewis, President and Chief Executive Officer of Reliance. “Our improved financial condition and upgraded credit ratings since our most recent renewal in 2020 have enabled us to secure more favorable pricing and fewer restrictive covenants. We believe this amended and restated credit agreement not only strengthens our already robust liquidity position but also enhances our capacity to continue pursuing our capital allocation priorities. We extend our gratitude to our banking partners for their steadfast support as we continue to strategically allocate capital for growth and enhanced stockholder returns.”
Bank of America N.A. is the Administrative Agent; JPMorgan Chase Bank, N.A. and Wells Fargo Bank, National Association are Co-Syndication Agents; and PNC Bank, National Association and the Toronto-Dominion Bank, New York Branch are Co-Documentation Agents. BofA Securities, Inc., JPMorgan Chase Bank, N.A. and Wells Fargo Securities, LLC are joint lead arrangers and joint bookrunners; and PNC Capital Markets LLC and TD Securities (USA) LLC are joint lead arrangers.
About Reliance, Inc.
Founded in 1939, Reliance, Inc. (NYSE: RS) is a leading global diversified metal solutions provider and the largest metals service center company in North America. Through a network of more than 320 locations in 41 states and 12 countries outside of the United States, Reliance provides value-added metals processing services and distributes a full-line of over 100,000 metal products to more than 125,000 customers in a broad range of industries. Reliance focuses on small orders with quick turnaround and value-added processing services. In 2023, Reliance’s average order size was
Forward-Looking Statements
This press release contains certain statements that are, or may be deemed to be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “expect,” “anticipate,” “believe,” and similar words and may include, but are not limited to, discussions of Reliance’s liquidity, business strategies including execution of capital allocation priorities and stockholder returns, and expectations concerning the Company’s future results of operations and capital resources. These forward-looking statements are based on management's estimates, projections and assumptions as of today’s date that may not prove to be accurate. Forward-looking statements involve known and unknown risks and uncertainties and are not guarantees of future performance. Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements as a result of various important factors, including, but not limited to, actions taken by us, including capital allocation initiatives, as well as developments beyond our control, including, but not limited to, changes in worldwide and U.S. economic conditions that impact our customers and the demand for our products and services. Deteriorations in economic conditions could lead to a decline in demand for our products and services and negatively impact our business and may also impact financial markets and corporate credit markets which could adversely impact our access to financing, or the terms of any financing. Other factors which could cause actual results to differ materially from our forward-looking statements include those disclosed in reports Reliance has filed with the United States Securities and Exchange Commission (the “SEC”).These forward-looking statements are based on management's expectations and assumptions as of today’s date and Reliance disclaims any obligation to publicly update or revise any forward-looking statements. Important risks and uncertainties about Reliance’s business can be found in “Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC.
CONTACT:
(213) 576-2428
investor@reliance.com
or Addo Investor Relations
(310) 829-5400
FAQ
What is the size and duration of Reliance's new credit facility?
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