Dofasco Provides Update on Notes Redemption
04/30/2007 - Dofasco has received the required written resolutions from noteholders authorizing amendments to the terms and conditions of each series of notes that will permit redemption of the 7.55% notes due October 1, 2008, and the 4.961% notes due June 15, 2017.
Dofasco Inc. says it has been advised by RBC Dominion Securities Inc. (RBC DS) that RBC DS has acquired 71.5% of the outstanding principal amount of the company's 7.55% unsecured medium term notes due October 1, 2008, and 86.5% of the principal amount of the company's 4.961% unsecured medium term notes due June 15, 2017 on the open market.
RBC DS had advised the company that it would consent to amendments to the terms and conditions of each series of notes that will permit the redemption of the 7.55% notes at a price equal to the Government of Canada Yield, and the redemption of 4.961% notes at par—in each case plus accrued but unpaid interest. Amendments to the terms of each series of notes require the approval of the holders of 66 2/3% of the outstanding principal amount of that series.
Dofasco, which had previously issued a press release (April 9, 2007) indicating its intention to redeem the notes, anticipates that formal amendments to the trust indentures will be made in early May, and says a notice of redemption will be sent to the registered holders of notes at that time.
Dofasco is a leading North American steel solutions provider. Product lines include hot rolled, cold rolled, galvanized, Extragal(TM), Galvalume(TM) and tinplate flat rolled steels, as well as tubular products. Dofasco's wide range of steel products is sold to customers in the automotive, construction, energy, manufacturing, pipe and tube, appliance, packaging and steel distribution industries.
