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Reynolds Metals Refinances 2 Major Term Loans

December 01, 1987|Associated Press

RICHMOND — Reynolds Metals Co. announced Monday that it has signed a $1.1-billion loan agreement designed to refinance two major term loans as part of an ongoing cost-reduction program.

The company also said it is calling for redemption on Jan. 4 of all of its outstanding first mortgage bonds. The bonds will be redeemed with general corporate funds.

"By lowering our borrowing costs and extending average loan maturities, these actions will improve the company's financial structure and provide increased flexibility, while removing lenders' security interests on approximately $2.3 billion of assets," said William O. Bourke, chief executive.

With a final maturity in 1996, $950 million of the new unsecured loan will be used to replace existing secured loans.

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