Ryerson Holding Corporation (NYSE: RYI) Announces Share Repurchase Agreement and Secondary Offering to Optimize Capital Structure and Provide Liquidity to Principal Shareholder
May 3, 2023
Ryerson Holding Corporation (NYSE: RYI), a leading distributor and processor of metals, has made a significant announcement today regarding a share repurchase agreement and a secondary offering. This move aims to optimize the company's capital structure and provide liquidity to its principal shareholder. The news comes as Ryerson continues to strengthen its position in the market. In this article, we will delve into the details of the share repurchase agreement and the secondary offering.
As part of the recent announcement, Ryerson Holding Corporation revealed its intention to repurchase 1,369,300 shares of its common stock directly from its principal shareholder, an affiliate of Platinum Equity LLC. This share repurchase, known as the "Share Repurchase," will be executed separately and is expected to be funded through the company's available cash reserves. It is anticipated that the Share Repurchase will take place concurrently with the closing of the secondary offering.
The principal shareholder of Ryerson Holding Corporation, an affiliate of Platinum Equity LLC, has initiated a secondary offering of 2,630,700 shares of the company's common stock. This offering is being conducted in accordance with a shelf registration statement filed with the Securities and Exchange Commission (SEC). It is important to note that Ryerson Holding Corporation itself is not offering any shares of its common stock in this secondary offering and will not receive any proceeds from the sale of the shares offered by the principal shareholder.
J.P. Morgan, a renowned financial institution, has been appointed as the sole underwriter for the secondary offering. As the underwriter, J.P. Morgan may sell the shares purchased from the principal shareholder in one or more transactions. These sales may be made directly to purchasers, through agents or brokers, on the New York Stock Exchange, in the over-the-counter market, or through negotiated transactions. The prices at which the shares will be sold may be based on prevailing market prices or negotiated prices.
The Share Repurchase is contingent upon various factors, including the closing of the secondary offering. However, it is important to note that the closing of the secondary offering is not dependent on the closing of the Share Repurchase. By separating these two transactions, Ryerson Holding Corporation aims to optimize the process and ensure smooth execution.
Members of LevelFields received the alert of this event on May 3, 4:55 PM ET
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