AK STEEL HEADLINESSteel Producers /
AK Steel
AK Steel Announces Pricing of Senior Notes Offering
Apr. 29, 2010 AK Steel Corp. has successfully priced a $400 million underwritten public offering of its 7-5/8% senior notes due 2020, following its earlier announcement that it had commenced the offering.
AK Steel will pay interest on the notes semi-annually on May 15 and November 15 each year, beginning on November 15, 2010. The notes will be fully and unconditionally guaranteed on a senior unsecured basis by AK Holding.
The company intends to use the net proceeds from the sale of the notes, together with cash on hand, to finance AK Steel's cash tender offer and consent solicitation for any and all of AK Steel's outstanding 7-3/4% Senior Notes due 2012.
The offering is expected to close on May 11, 2010, subject to customary closing conditions.
Joint book-running managers for the offering are Credit Suisse, BofA Merrill Lynch, J.P. Morgan, Morgan Stanley, UBS Investment Bank, and Wells Fargo Securities.
AK Steel produces flat-rolled carbon, stainless and electrical steels, primarily for automotive, appliance, construction and electrical power generation and distribution markets. The company employs about 6200 men and women in Middletown, Mansfield, Coshocton and Zanesville, Ohio; Butler, Pa.; Ashland, Ky.; Rockport, Ind.; and its corporate headquarters in West Chester, Ohio.
AK Tube LLC, a wholly owned subsidiary of AK Steel, employs about 300 men and women in plants in Walbridge, Ohio, and Columbus, Ind. AK Tube produces carbon and stainless electric resistance welded (ERW) tubular steel products for truck, automotive and other markets.