The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from Marketwire

Russel Metals Obtains Approval to Amend its Convertible Debentures

Tuesday, December 14, 2010

Russel Metals Obtains Approval to Amend its Convertible Debentures16:13 EST Tuesday, December 14, 2010TORONTO, ONTARIO--(Marketwire - Dec. 14, 2010) - Russel Metals Inc. (TSX:RUS) today announced that the holders of its 7.75% convertible unsecured subordinated debentures approved an amendment to the Trust Indenture removing the Company's right to settle conversions prior to maturity in cash in lieu of common shares.Marion E. Britton, Vice President and Chief Financial Officer of the Company stated "In preparing to report our financial results under International Financial Reporting Standards it was determined that the Company's ability to elect to settle debenture conversions in cash is considered to be a derivative under IFRS and could result in significant volatility in our earnings based on movement of the stock price. The amendment eliminates this volatility and will align our cash flow with our operating results."Russel Metals is one of the largest metals distribution companies in North America. It carries on business in three distribution segments: metals service centers, energy tubular products and steel distributors, under various names including Russel Metals, A.J. Forsyth, Acier Leroux, Acier Loubier, Acier Richler, Arrow Steel Processors, B&T Steel, Baldwin International, Comco Pipe and Supply, Fedmet Tubulars, JMS Russel Metals, Leroux Steel, McCabe Steel, Mégantic Métal, Métaux Russel, Métaux Russel Produits Spécialisés, Milspec, Norton Metals, Pioneer Pipe, Russel Metals Specialty Products, Russel Metals Williams Bahcall, Spartan Steel Products, Sunbelt Group, Triumph Tubular & Supply, Wirth Steel and York-Ennis.Statements contained in this press release that relate to Russel Metals' beliefs or expectations as to certain future events are not statements of historical fact and are forward-looking statements. Russel Metals cautions readers that there are important factors, risks and uncertainties, including but not limited to economic, competitive and governmental factors affecting Russel Metals' operations, markets, products, services and prices that could cause its actual results, performance or achievements to be materially different from those forecasted or anticipated in such forward-looking statements.The forward-looking statements in this document reflect management's current beliefs and are based on information currently available to management. The material assumptions applied in making the forward-looking statements in this document include the following: demand from the manufacturing, resource and construction segments of the Canadian economy and oil and gas prices have all been significantly negatively impacted by the economic conditions and these conditions will improve at a slow pace throughout 2010; the price of steel will remain stable during the fourth quarter due to lack of demand; and the value of the Canadian dollar relative to the U.S. dollar will be range bound consistent with the third quarter of 2010. Although the forward-looking statements contained in this document are based upon what management believes to be reasonable estimates and assumptions, Russel Metals cannot ensure that actual results will not be materially different from those expressed or implied by these forward-looking statements.FOR FURTHER INFORMATION PLEASE CONTACT: Marion E. Britton, C.A.Russel Metals Inc.Vice President, Chief Financial Officer and Secretary(905) 819-7407info@russelmetals.comwww.russelmetals.com