Earle M. Jorgensen Co. has entered into a Third Amended and Restated Credit Agreement, with Earle M. Jorgensen Holding Co., Inc., related financial institutions, and Deutsche Bank Trust Co. Americas, acting as agent.

EMJ’s amended credit facility allows for maximum borrowings of up to $300 million. Borrowings under the Amended Credit Agreement bear interest at a base rate (generally defined as the greater of Deutsche Bank Trust Co. Americas' prime lending rate or 0.5% over the Federal Funds Rate) plus 1.00% or the adjusted Eurodollar rate plus 2.00%. The applicable margin will increase or decrease based on EMJ’s leverage ratio. Borrowings under the revolving loans are limited to an amount equal to 85% of eligible trade receivables plus 60% of eligible inventories (as defined in the Amended Credit Agreement). The Amended Credit Agreement matures on March 3, 2010, and is secured by a lien on all domestic inventory and accounts receivable of EMJ.

Under the Amended Credit Agreement, EMJ is obligated to pay certain fees including an unused commitment fee of 0.375%, payable quarterly in arrears, and letter of credit fees of applicable Eurodollar margin, currently 2.00% per annum, of the maximum amount available to be drawn under each letter of credit, payable quarterly in arrears, plus issuance, fronting, amendment and other standard fees.

The Amended Credit Agreement contains a financial covenant in respect of maintenance of a fixed charge coverage ratio. The new agreement also limits, among other things, the incurrence of liens and other indebtedness, mergers, consolidations, the sale of assets, annual capital expenditures, advances, investments and loans by EMJ and its subsidiaries, dividends and other restricted payments by EMJ and its subsidiaries in respect to their capital stock, and certain transactions with affiliates.

Headquartered in Lynwood, Calif., EMJ is a leading distributor of metal bar and tubular products used by North American manufacturing companies. EMJ inventories more than 25,000 different metal products in large quantities from primary producers, including a broad mix of carbon steel, stainless steel and aluminum bar. EMJ provides its customers value-added metal processing and inventory management services from a distribution network of 35 strategically located service and processing centers in the United States and Canada.