Gerdau Ameristeel shrinks $950M line of credit

AP News
Posted: Dec 22, 2009 4:21 PM

Gerdau Ameristeel Corp. said it has replaced a $950 million secured line of credit due next October with a new smaller $650 million line of credit that won't come due until Dec. 21, 2012.

The new line is secured by the company's cash, accounts receivable and inventory. The company is a unit of Brazilian steel producer Gerdau SA.

The company also said it plans to use cash to prepay $300 million in debt on Dec. 30. That will reduce its outstanding debt to about $2.4 billion.

Gerdau Ameristeel shares fell 12 cents to close at $7.87.