2014

Metals USA Announces New Debt Financing Reducing Annual Interest Expense By $10 Million

FORT LAUDERDALE, Fla., Nov. 14, 2012 /PRNewswire/ -- Metals USA, Inc. ("Metals USA"), a wholly-owned subsidiary of Metals USA Holdings Corp. (NYSE: MUSA), today announced that it has 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."

About Metals USA, Inc.

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. For more information, visit Metals USA's website at www.metalsusa.com. The information contained in this release is limited and Metals USA encourages interested parties to read Metals USA's annual report on Form 10-K, its quarterly reports on Form 10-Q and its other reports, statements and materials filed with the Securities and Exchange Commission for more complete information about Metals USA. Additionally, copies of Metals USA's filings with the Securities and Exchange Commission, together with press releases and other information investors may find of interest, can be found at Metals USA's website at www.metalsusa.com under "Investor Relations."  

Forward-Looking Statements

Certain statements in this press release may constitute "forward-looking" statements, as defined under the Private Securities Litigation Reform Act of 1995.  Words such as "expects," "anticipates," "intends," "plans," "projects," "believes," "estimates," "forecasts" and similar expressions are used to identify these forward-looking statements.  Forward-looking statements in this press release include, but are not limited to, statements concerning the company's refinancing, its financial performance and projections concerning its capital structure , balance sheet and expected interest expense savings.  Forward-looking statements are based upon assumptions as to future events that may not prove to be accurate.  These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict.  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, those disclosed in the Company's historic periodic filings with the SEC.  As a result, these statements speak only as of the date that they were made, and Metals USA undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Metals USA Holdings Corp.



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