Gerdau AmeriSteel Corp. (GNA)

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Gerdau Ameristeel Announces New $650 Million Credit Facility and $300 Million Debt Prepayment

Monday , December 21, 2009 18:00ET

TAMPA, FL, Dec. 21 /PRNewswire-FirstCall/ - Gerdau Ameristeel Corporation (the "Company") (NYSE: GNA; TSX: GNA) today announced that it entered into a new $650 million senior secured asset-based revolving credit facility. This facility replaces the Company's existing $950 million asset-based credit facility that would have matured in October 2010. The new facility is scheduled to mature on December 21, 2012 and is secured by the Company's cash, accounts receivable, inventory and other personal property other than equipment and real estate.

In additional, the Company today announced its intention to prepay on December 30, 2009 $175 million of its outstanding Tranche A term debt and $125 million of its outstanding Tranche C term debt with cash. This will reduce the Company's outstanding debt to approximately $2.4 billion.