Ryerson Tull, Inc. announced that it intends to privately offer, subject to market conditions and other factors, $125 million aggregate principal amount of convertible senior notes due 2024. The company intends to grant to the initial purchasers an option to purchase an additional $25 million aggregate principal amount of the notes within 30 days after the offering.

The offering will be made only to qualified institutional buyers in accordance with Rule 144A under the Securities Act. The Company intends to use the net proceeds to repay borrowings under its revolving credit facility.

The notes, which will pay interest semi-annually, will be convertible into shares of the company's common stock upon specified events, at a conversion rate to be determined at the time of pricing. Upon conversion, the company will deliver cash equal to the lesser of the aggregate principal amount of the notes being converted and the company's total conversion obligation, and common stock in respect of the remainder. The notes will be guaranteed by one of the company's subsidiaries, Ryerson Tull Procurement Corp., on a senior unsecured basis.

These notes, the subsidiary guarantee and the common stock issuable upon conversion of the notes have not been registered under the Securities Act of 1933 or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933 and applicable state securities laws.

Ryerson Tull, Inc. is a leading North American distributor and processor of metals, with 2003 revenues of $2.2 billion. The company services customers through a network of service centers across the United States and in Canada, Mexico, and India.