Reliance Enters Into $400 Million Loan Facility to Refinance Debt

Reliance, Inc.RS announced that it has secured a $400 million unsecured term loan facility effective Aug. 14, 2025, maturing in August 2028. The proceeds were used to refinance the company’s $400 million senior unsecured notes that were due on Aug. 15, 2025.

Reliance’s net debt-to-EBITDA ratio was 0.9x as of June 30, 2025, displaying its conservative approach toward the debt structure while driving value through capital allocation. This new facility complies with its existing approach and enables Reliance to maintain ample capacity to invest in high-return opportunities.

The company’s focus on organic growth, strategic acquisitions, consistent returns to stockholders through quarterly dividends and share repurchases will be complemented through this move, as it enhances financial flexibility. Additionally, it has also extended debt maturities and maintained a balanced capital deployment approach. The company remains committed to investing in high-return opportunities while delivering sustainable value to its shareholders.

RS stock has gained 4.1% over the past year compared with the industry’s 11.2% rise.

Reliance expects overall demand to remain steady in the third quarter of 2025 across its diverse end markets, factoring in typical seasonal trends. These include a decline in shipping volumes due to planned customer shutdowns and vacation schedules, along with ongoing uncertainty surrounding both domestic and global trade policies. As a result, the company predicts that tons sold will decrease 1% to 3% from the second quarter of 2025, but will be 3% to 5% higher than in the third quarter of 2024.

Reliance also anticipates its average selling price per ton in the third quarter will range from a 1% decline to a 1% increase from the previous quarter. Reliance forecasts adjusted earnings per share to be between $3.60 and $3.80 for the third quarter of 2025. This includes an estimated LIFO expense of $25 million, or 36 cents per share.

Reliance’s Zacks Rank & Key Picks

RS currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Basic Materials space are Nutrien Ltd. NTR, Carpenter Technology Corporation CRS and CF IndustriesHoldings, Inc. CF. While NTR currently sports a Zacks Rank #1 (Strong Buy), CRS and CF carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for NTR’s current-year earnings is pegged at $4.30 per share, implying a 23.92% year-over-year surge. Its earnings beat the Zacks Consensus Estimate in one of the trailing four quarters while missing the rest. Its shares have gained 24.2% in the past year.

The Zacks Consensus Estimate for CRS’ fiscal 2025 earnings is pegged at $9.36 per share, indicating a rise of 25.13% from year-ago levels. The company’s earnings beat the consensus estimate in each of the trailing four quarters. Its shares have soared 69.1% in the past year.

The Zacks Consensus Estimate for CF’s current-year earnings is pegged at $7.65 per share, indicating a 13.5% year-over-year increase.Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 25.29%. CF’s shares have gained 7.3% in the past year.

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This article originally published on Zacks Investment Research (zacks.com).

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