Debtholder Information
7.75% Convertible Unsecured Subordinated Debentures Due 2016
On October 2, 2009, the Company issued $175 million of 7.75% convertible unsecured subordinated debentures. The convertible debentures will mature on September 30, 2016 and interest is paid on the convertible debentures semi annually on March 31, and September 30. The first interest payment was made on March 31, 2010.
Each convertible debenture is convertible into common shares at the option of the holder at any time on or prior to the business day immediately proceeding September 30, 2016 or a redemption date. The conversion price is $25.75 per common share, being a conversion rate of approximately 38.8350 common shares per $1,000 principal.
Upon conversion, holders of the convertible debentures will not be entitled to interest accrued since the last interest payment date, unless they convert their convertible debentures after the record date for the subsequent interest payment date, in which case, they will be entitled to receive such interest payment.
The Company is not required to issue fractional common shares upon conversion of the convertible debentures, but will, in lieu of a fractional interest, make a cash payment to the holder of such convertible debenture of an amount equal to the fractional interest; however, the Company is not required to make any cash payment that is less than $10.00.
On or after September 30, 2015, the convertible debentures are redeemable at the option of the Company, at a price equal to their principal amount plus accrued and unpaid interest.
The Company has the right to repay the outstanding principal, on conversion, maturity or redemption, through the issuance of common shares, cash or any combination thereof.
The convertible debentures are not entitled to receive common share dividends.
[CLICK HERE] for the Final Short Form Prospectus.
6.375% Senior Notes due 2014
On February 20, 2004, the Company issued US $175 million of Senior Notes due March 1, 2014, bearing interest of 6.375%. Interest on the Senior Notes is payable on March 1 and September 1 of each year beginning September 1, 2004.
[CLICK HERE] for the Offering Memorandum.
Debt Rating Agencies
Please note that inclusion of the following debt rating agencies is for information purposes only and does not reflect Russel Metals Inc.'s agreement or disagreement with the opinions expressed by these debt rating agencies. To the best of the Company's knowledge, the following list reflects all debt rating agencies that publish research on Russel Metals Inc.
AGENCY
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Moody's Investors Services
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Standard & Poor's
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Redemptions and Maturities
The 10.2% Debentures matured July 13, 1998.
The 10.25% US Senior Notes were redeemed on June 25, 1999.
The 9% Convertible Debentures were redeemed on June 28, 1999.
The 10% US Senior Notes were redeemed on February 23, 2004 and June 1, 2004.
The Class II Preferred Shares, Series C were redeemed on March 22, 2004. [CLICK HERE] for the Notice of Redemption.
The 8% Subordinated Debentures were redeemed on March 26, 2004. [CLICK HERE] for the Notice of Redemption.
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