Metals USA Holdings Corp. Announces Asset-Based Credit Facility Amendment

FORT LAUDERDALE, Fla., Aug. 15, 2011 /PRNewswire/ -- Metals USA Holdings Corp. (NYSE: MUSA) announced today that its wholly-owned subsidiaries, Flag Intermediate Holdings Corporation, Metals USA, Inc. and certain additional subsidiaries have amended their existing $525 million asset-based credit facility (the "ABL Facility").  Key elements of the amendment include extending the ABL Facility maturity date to August 10, 2016, lowering the effective cost to borrow by approximately 50 basis points, and modifying certain covenants.  The amendment became effective August 10, 2011.

Lourenco Goncalves, Metals USA's Chairman, President and C.E.O. stated: "We greatly appreciate the support our lenders have demonstrated to our business and to our growth strategy.  We are pleased our amendment was well received by our lender group and we are proud of the fact that their commitments exceeded our intended facility size.  Our ABL Facility is a critical component of Metals USA's capital structure and provides the means to execute our growth strategy."

Bank of America, N.A. will continue as Administrative Agent and Collateral Agent; and Merrill Lynch, Pierce, Fenner & Smith Incorporated; J.P. Morgan Securities LLC; Wells Fargo Capital Finance, LLC; Barclays Capital; and U.S. Bank National Association will act as Joint Lead Arrangers and Joint Bookrunners.

Additionally, on August 2, 2011 Standard and Poor's raised its corporate credit ratings on Metals USA Holdings Corp. and its wholly-owned subsidiary, Metals USA, Inc. to "B+" from "B".  The rating outlook is stable.

About Metals USA

Metals USA provides a wide range of products and services in the heavy carbon steel, flat-rolled steel, non-ferrous metals, and building products markets.  For more information, visit the Company's website at www.metalsusa.com.  The information contained in this release is limited and the Company encourages interested parties to read the Company's historical Form 10-Ks and Form 10-Qs which are on file with the Securities and Exchange Commission for more complete historical information about the Company.  Additionally, copies of the Company's filings with the Securities and Exchange Commission, together with press releases and other information investors may find of interest, can be found at the Company's website at www.metalsusa.com under "Investor Relations."

CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements within the meaning of the federal securities laws which involve known and unknown risks, uncertainties or other factors not under the Company's control which may cause the actual results, performance or achievement of the Company to be materially different from the results, performance or other expectations implied by these forward-looking statements. Such statements include, but are not limited to, statements concerning the future performance of the Company, statements concerning the Company's access to capital, growth strategy, credit agency ratings, competitive position and market share; projections concerning revenue, profitability, raw material pricing, cash flows, earnings, sales, volumes, balance sheet strength, debt or other financial and operational measures; projected working capital needs; demand trends for the Company's products or its markets; pricing trends for metal or other raw materials and finished goods and the impact of pricing changes; anticipated capital expenditures; anticipated improvements and efficiencies in costs, operations, sales, inventory management, sourcing and the supply chain; projected timing, results, benefits, costs, charges and expenditures related to acquisitions or divestitures; the ability to operate profitably and generate cash in the current economic environment, the ability to capture and maintain margins and market share and to develop or take advantage of future opportunities, new products, services and markets; expectations for Company and customer inventories and customer orders; expectations for the economy and markets or improvements therein; expectations for improving earnings, margins or shareholder value; and other non-historical matters. Factors that could cause the Company's results to differ materially from actual results or current expectations include, but are not limited to, changes in metal prices, the effect of economic conditions generally in the United States, internationally and in the regions in which the Company operates and within major product markets, including a prolonged or substantial economic downturn; the effect of consolidation or other actions of our suppliers; disruptions in our sources of supply; increased competition and the other factors detailed in the Company's annual report on Form 10-K under the caption "Risk Factors" and other reports filed with the Securities and Exchange Commission. In addition, these statements are based on a number of assumptions that are subject to change. This press release speaks only as of this date and the Company disclaims any duty to update the information herein.

SOURCE Metals USA Holdings Corp.

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