Steel Technologies Inc. has successfully issued $50 million of unsecured Senior Notes through a private placement arranged by SunTrust Robinson Humphrey.

The Notes, which have an average term of 9.4 years and a blended interest rate of 5.67%, comprise $10 million due in 2011, bearing interest at 5.33%, and $40 million due in 2014, bearing interest at 5.75%. The company has used the proceeds to reduce outstanding debt under its unsecured revolving credit facility.

"We are pleased to announce this longer-term private placement of debt, which provides additional borrowing capacity to execute our business plans," said Bradford T. Ray, Chairman and CEO. "This private placement complements the additional capital we have raised in calendar 2004, beginning with the $47.3 million from a successful secondary stock offering last March, and a new, five-year, $135 million unsecured credit facility in September, which includes the opportunity, under certain circumstances, to expand it to $200 million.

"Importantly, these efforts allow us to continue to pursue strategic initiatives and support our goal of exploring business strategies that leverage Steel Technologies' broad range of value-added resources," continued Mr. Ray. "In addition, this latest transaction will more closely align our capital structure with our overall mix of assets."

Steel Technologies processes flat-rolled steel to specific thickness, width, temper, finish and shape requirements for a wide range of applications. The company has 21 facilities, including its joint-venture operations, located throughout the United States and Mexico.