Gerdau Ameristeel Announces Revised Financing Commitment
08/31/2007 - Gerdau Ameristeel replaces a previously announced financing commitment intended to fund the company’s pending acquisition of Chaparral Steel with a firm commitment from ABN AMRO Bank NV, HSBC and J.P. Morgan Securities as Joint Lead Arrangers.
Gerdau Ameristeel has replaced its previously announced financing commitment from J.P. Morgan Securities, Inc. with a firm commitment from ABN AMRO Bank N.V., HSBC and J.P. Morgan Securities, Inc. as Joint Lead Arrangers. The financing will fund the company’s pending acquisition of Chaparral Steel Co.
The new financing commitment, which is being syndicated internationally, is fully committed, provides additional flexibility, and is on terms that are expected to be at least as favorable as those contemplated by the original financing commitment.
Consummation of the Chaparral acquisition remains subject to other customary conditions, including adoption of the Agreement and Plan of Merger by Chaparral's stockholders.
Gerdau Ameristeel is the second-largest minimill steel producer in North America with annual manufacturing capacity of over 9.0 million tons of mill finished steel products. Through its vertically integrated network of 17 minimills (including one 50% owned joint venture minimill), 17 scrap recycling facilities and 52 downstream operations, Gerdau Ameristeel serves customers throughout North America. Products are generally sold to steel service centers, steel fabricators, or directly to original equipment manufactures for use in a wide variety of industries.
