Reliance secures $400 million term loan facility to refinance maturing debt

SCOTTSDALE, Ariz. - Reliance, Inc. (NYSE:RS), a metals service provider with a market capitalization of $14.89 billion, has entered into a $400 million unsecured term loan facility maturing in August 2028, the company announced Tuesday. The facility, effective August 14, was used to refinance the company’s $400 million senior unsecured notes that matured on August 15.

The new three-year facility is designed to complement Reliance’s existing capital structure while maintaining liquidity for potential investments, according to the company’s statement. With a strong current ratio of 3.18 and a conservative debt-to-equity ratio of 0.24, the company maintains significant financial flexibility.

"The refinancing enables us to continue to advance our opportunistic capital allocation strategies of organic growth, strategic acquisitions, and consistent returns to stockholders through quarterly dividends and opportunistic share repurchases," said Karla Lewis, President and Chief Executive Officer of Reliance.

The company reported a net debt-to-EBITDA ratio of 0.9x as of June 30, 2025, which it described as reflecting its commitment to maintaining a conservative leverage profile.

Reliance, founded in 1939, operates approximately 320 locations across 41 states and 10 countries outside the United States. The company provides metal processing services and distributes metal products to customers in various industries.

In 2024, Reliance’s average order size was $2,980, with about half of orders including value-added processing and 40% delivered within 24 hours, according to information provided in the company statement.

In other recent news, Reliance Inc. reported strong financial performance for the second quarter of 2025. The company achieved non-GAAP earnings per share of $4.43, representing a 17.5% increase from the previous quarter. Reliance Inc. also generated $229 million in cash flow from operations and maintained a gross profit margin between 29% and 31%. These results highlight the company’s strategic initiatives and strong market position amid economic volatility. Additionally, Wells Fargo initiated coverage on Reliance Steel & Aluminum with an Equal Weight rating and a price target of $296.00. The investment bank’s assessment is based on an 11x 2026 estimated EV/EBITDA multiple, which is above the company’s five-year average of 9.1x. These developments provide investors with important insights into the company’s financial health and market valuation.

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