Russel Metals Inc.
TSX : RUS

Russel Metals Inc.

September 21, 2009 11:08 ET

Russel Metals to Increase Size of Bought Deal Financing to C$175 million

TORONTO, ONTARIO--(Marketwire - Sept. 21, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Russel Metals Inc. (TSX:RUS) is pleased to announced that the syndicate of underwriters led by GMP Securities L.P. have increased the size of the previously announced bought deal by an additional $25 million principal amount of 7.75% convertible unsecured subordinated debentures ("Convertible Debentures") of the Company maturing September 30, 2016, at a price of $1,000 per debenture, all on the terms set forth in Russel Metals' earlier press release. The total size of the deal is now $175 million (the "Offering"). Russel Metals intends to use the net proceeds of the offering for working capital, potential acquisitions and general corporate purposes.

A preliminary short-form prospectus will be filed by September 25, 2009 with the securities regulatory authorities in all provinces of Canada. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registrations requirements of such Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction.

Forward-Looking Statements

This news release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Russel Metals, or developments in Russel Metals' business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements include all disclosure regarding possible events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. Russel Metals cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements relate to, among other things, the expected use of proceeds of the offering and the expected closing date of the offering. The risks and uncertainties that may affect forward-looking statements include, among others: economic market conditions; and other risks detailed from time to time in Russel Metals' filings with Canadian provincial securities regulators. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and, except as required by law, Russel Metals does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change.

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