Metals USA announces change in debt financing plan

Metals USA announces change in debt financing plan

Metals USA Inc. announced today that there will be changes to a key condition of the company's debt financing plan for its pending merger with Apollo Management LP. The banks providing the debt financing for Apollo's pending acquisition of Metals USA have agreed to modify their debt financing commitment letter. Under the terms of the modified letter, the condition requiring Metals USA's consolidated earnings pre-interest, tax, depreciation and amortization for the fiscal quarter ended September 30, 2005 to equal at least $117.5 million will be deemed satisfied as long as the lenders are satisfied that the company's minimum earnings for this period are equal to $113.8 million. The company expects that the condition will be fulfilled, as its consolidated earnings (pre-interest, tax, etc.) for the quarter ended September 30, 2005 equaled approximately $114.3 million. Metals USA anticipates that its previously announced merger with Apollo, which will provide Metals USA stockholders with $22 per share in cash, will be completed in the fourth quarter of 2005. Houston, Texas based Metals USA provides products and services in the flat rolled, plates and shapes, and building products industries.