AK Steel Announces Notes Offering, Cash Tender Offer and Consent Solicitation
04/27/2010 - AK Steel has commenced a registered offering of $400 million aggregate principal amount of its senior notes due 2020, a tender offer to purchase for cash outstanding Senior Notes due 2012, and a consent solicitation for proposed amendments to the indenture governing the Senior Notes due 2012.
AK Steel Corp. has commenced a registered offering of $400 million aggregate principal amount of its senior notes due 2020.
The company said it intends to use net proceeds of the offering to help finance its cash tender offer and consent solicitation, also announced on Monday, for any and all of AK Steel's outstanding 7-3/4% Senior Notes due 2012.
Simultaneously with the offering, AK Steel has commenced the tender offer to purchase for cash any and all of its outstanding Senior Notes due 2012 and a consent solicitation for certain proposed amendments to the indenture governing the Senior Notes due 2012. Among other things, the consents would eliminate substantially all of the restrictive covenants and certain events of default contained in the indenture.
If so approved, the proposed amendments will not become operative until after AK Steel has paid the consent payment to all holders that have validly tendered (and not validly revoked) consents on or prior to the Consent Date.
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 also has retained Credit Suisse and BofA Merrill Lynch to serve as Dealer Managers for the Tender Offer, and has retained Global Bondholder Services Corporation to serve as the information agent.
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.
