EMJ Completes $205 Million Debt Offerings and Structuring of $220 Million Revolving-Credit Agreement; EMJ Expects Record Revenues and Income.BREA, Calif.--(BUSINESS WIRE)--March 24, 1998--The Earle M. Jorgensen Co. (EMJ EMJ Emergency Medicine Journal ) Tuesday announced the successful completion of a private offering under Rule 144A Rule 144A A Securities & Exchange Commission rule modifying a two-year holding period requirement on privately placed securities to permit qualified institutional buyers to trade these positions among themselves. of $105 million of 9-1/2 percent senior notes due 2005, borrowings of $100 million under a secured floating-rate term-loan agreement and a $220 million revolving-credit agreement. The proceeds of the transactions were used to redeem $155 million in aggregate principal amount of EMJ's outstanding 10-3/4 percent senior notes due 2000, to prepay $5.1 million of purchase-money indebtedness, to pay $45.4 million of parent-company indebtedness and to refinance its existing revolving-credit facility. Maurice S Maurice, Byzantine emperor Maurice (môr`ĭs), c.539–602, Byzantine emperor (582–602). He was a successful general when, on his deathbed, Tiberius II, his father-in-law and the successor of Justin II, proclaimed him . Nelson Jr., EMJ's chief executive officer, said that management was pleased that it was able to take advantage of the favorable financial markets and EMJ's recent strong operating results to consummate the refinancing. The new financing, arranged by Donaldson, Lufkin & Jenrette; BT Alex. Brown Inc.; and BT Commercial Corp., provides EMJ with lower interest rates, extended maturity dates and increased working-capital availability. Nelson expects that EMJ's operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. (before any charges associated with the refinancing) for the fiscal year ending March 31, 1998, will be a record for the company. He also said EMJ's revenues will also reach record levels. He added that the operating income is benefiting from improved gross margins and will be enhanced by expense reductions resulting from last year's restructuring. In addition to the lower expense level resulting from the restructuring, a current initiative to ``re-engineer internal processes'' is expected to lower the expense-to-revenue ratio and improve gross margins into fiscal 1999. EMJ, with headquarters in Brea, is one of the largest independently owned distributors of metal in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , with 25 North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. service centers and six processing centers. EMJ inventories more than 40,000 sizes, shapes and grades of bar, sheet, plate, structurals, expanded metals, tubing and pipe in carbon, alloy steel, stainless steel, stainless, n a steel that contains a minimum of 12% chromium and approximately 0.5% carbon to resist corrosion. and specialty aluminum and steel. CONTACT: Earle M. Jorgensen Co., Brea Charles Gallopo, 714/579-8823 714/577-3754 (fax) |
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