SEC Filings

10-Q
RELIANCE STEEL & ALUMINUM CO filed this Form 10-Q on 11/13/2000
Entire Document
 
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3.  LONG-TERM DEBT

Long-term debt consists of the following:


<TABLE>
<CAPTION>
                                                                           SEPTEMBER 30,       DECEMBER 31,
                                                                                2000               1999
                                                                           -------------       ------------
                                                                                     (IN THOUSANDS)
<S>                                                                        <C>                 <C>
Revolving line of credit ($200,000,000 limit) due October 22,
  2002, interest at variable rates, weighted average rate of
  6.8% during the nine months ended September 30, 2000 .............         $ 112,750          $  25,000
Senior unsecured notes due January 2, 2004 to January 2,
  2009, average fixed interest rate 7.22% ..........................            75,000             75,000
Senior unsecured notes due January 2, 2002 to January 2,
  2008, average fixed interest rate 7.02% ..........................            65,000             65,000
Senior unsecured notes due October 15, 2005 to October 15,
  2010, average fixed interest rate 6.55% ..........................           150,000            150,000
Variable Rate Demand Industrial Development Revenue
  Bonds, Series 1989 A, due July 1, 2014, with interest
  payable quarterly, average interest rate of 3.5% during
  the nine months ended September 30, 2000 .........................             3,050              3,200
                                                                             ---------          ---------
                                                                               405,800            318,200
  Less amounts due within one year .................................              (150)              (150)
                                                                             ---------          ---------
                                                                             $ 405,650          $ 318,050
                                                                             =========          =========
</TABLE>


The Company has a syndicated credit agreement with four banks for an unsecured
revolving line of credit with a borrowing limit of $200,000,000. The syndicated
credit agreement allows the Company to use up to $175,000,000 of the revolving
line of credit for acquisitions. The Company has $290,000,000 of outstanding
senior unsecured notes issued in private placements of debt. These notes bear
interest at an average fixed rate of 6.83% and have an average life of 9.1
years, maturing from 2002 to 2010. The Company also entered into a credit
agreement that allows the Company to issue and have outstanding up to a maximum
of $10,000,000 of letters of credit.

The Company's long-term loan agreements require the maintenance of a minimum net
worth and include certain restrictions on the amount of cash dividends payable,
among other things, which are measured quarterly.

4. SHAREHOLDERS' EQUITY

The Board of Directors authorized a 3-for-2 common stock split effected in the
form of a 50% stock dividend distributed on September 24, 1999, to shareholders
of record on September 2, 1999. All references in the financial statements to
number of shares and per share amounts have been retroactively adjusted to
reflect this stock split.

In August 1998, the Board of Directors approved the purchase of up to an
additional 3,750,000 shares of the Company's outstanding Common Stock through
its Stock Repurchase Plan, for a total of up to 6,000,000 shares. The Stock
Repurchase Plan was initially established in December 1994 and authorizes the
Company to purchase shares of its Common Stock from time to time in the open
market or in privately-negotiated transactions. Repurchased shares are redeemed
and treated as authorized but unissued shares. As of September 30, 2000, the
Company had repurchased a total of 3,268,275 shares of its Common Stock under
the Stock Repurchase Plan, at an average cost of $11.88 per share. During the
nine month period ended September 30, 2000, the Company repurchased 595,950
shares of its Common Stock under this plan at an average cost of $20.74 per
share.

In March 2000, 10,854 shares of Common Stock were issued to division managers
and officers of the Company under the 1999 Key-Man Incentive Plan.


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