Reliance, Inc. Secures New Term Loan Facility
In a significant move to bolster its financial position, Reliance, Inc. (NYSE: RS), a premier global provider of diversified metal solutions, announced the establishment of a $400 million unsecured term loan facility effective August 14, 2025. This facility, which is set to mature in August 2028, will enable the company to refinance its existing $400 million senior unsecured notes that are due on August 15, 2025.
Enhancing Financial Flexibility
The strategic refinancing through this facility allows Reliance to optimize its capital structure, maintaining exceptional flexibility to pursue high-return investment opportunities. Karla Lewis, the company’s President and CEO, expressed satisfaction with the terms of the new loan, highlighting how it extends their debt maturities and enhances liquidity.
Commitment to Growth and Value Creation
Reliance’s leadership is dedicated to advancing its capital allocation strategies which encompass not only organic growth but also strategic acquisitions. The company remains committed to providing consistent returns to shareholders through quarterly dividends and share repurchase initiatives. As of June 30, 2025, Reliance reported a net debt-to-EBITDA ratio of 0.9x, illustrating a conservative leverage profile aimed at creating sustainable value.
Robust Capital Deployment Strategy
Reliance’s strategy centers around seizing meaningful growth opportunities while ensuring operational success. The strong backing from banking partners during this transaction underscores confidence in Reliance's potential to navigate its next phase of growth effectively.
About Reliance, Inc.
Established in 1939, Reliance, Inc. has emerged as a leading global diversified metal solutions provider and holds the title of the largest metals service center company in North America. With a network comprising approximately 320 locations across 41 states and 10 countries, Reliance offers over 100,000 metal products and value-added processing services. Their commitment to small order efficiency and quick turnarounds has served a diverse clientele of over 125,000 customers in various industries.
Efficient Operations and Services
In 2024, the average order size for Reliance stood at $2,980, and about 50% of these orders featured value-added processing. Remarkably, around 40% of the company’s orders were delivered within a fast 24 hours, demonstrating its strong operational capabilities and responsiveness to customer needs.
Company Contacts
For more information about Reliance, interested parties can reach out to:
(213) 576-2428
investor@reliance.com
or through Addo Investor Relations at (310) 829-5400.
Frequently Asked Questions
What is the purpose of Reliance, Inc.’s new term loan facility?
The loan is intended to refinance existing debt and enhance the company's financial flexibility for future growth opportunities.
How will this loan impact Reliance’s capital allocation strategy?
The facility allows Reliance to maintain a strong liquidity position while pursuing strategic acquisitions and returning value to shareholders.
What is the significance of the net debt-to-EBITDA ratio?
A net debt-to-EBITDA ratio of 0.9x indicates Reliance has a low level of debt relative to its earnings, reflecting a conservative financial strategy.
When does the new loan facility mature?
The unsecured term loan facility matures in August 2028, providing Reliance with ample time to execute its strategic plans.
What industries does Reliance serve?
Reliance serves a broad range of industries by providing metals processing services and distributing diverse metal products.
