Gerdau Ameristeel to Redeem 10 3/8% Senior Notes due at 2011
07/20/2009 - Gerdau Ameristeel announces its intentions to fully redeem its $405 million 10 3/8% Senior Notes due 2011 on August 31, 2009.
Gerdau Ameristeel Corp. announced its intentions to fully redeem its $405 million 10 3/8% Senior Notes due 2011 on August 31, 2009.
In its notice to the U.S. Bank National Association, the indenture trustee, the company said it would pay at a redemption price equal to 101.792% of the outstanding principal amount plus accrued interest to the redemption date, with the redemption price paid in cash.
The company expects the redemption to occur on August 31, 2009, although the notice could be cancelled at any time prior to July 31, 2009. Upon payment of the redemption price on the redemption date, all of the company's 10 3/8% Senior Notes due 2011 will have been paid in full.
Gerdau Ameristeel is the second-largest minimill steel producer in North America, with annual manufacturing capacity of approximately 12 million tons of mill finished steel products. Through its vertically integrated network of 19 minimills (including one 50% owned joint venture minimill), 23 scrap recycling facilities and 57 downstream operations, Gerdau Ameristeel serves customers throughout the United States and Canada. The company's products are generally sold to steel service centers, steel fabricators, or directly to original equipment manufacturers for use in a variety of industries.
Gerdau Ameristeel's majority shareholder is the Gerdau Group, a 100+-year-old steel company, the leading company in the production of long steel in the Americas and one of the major specialty long steel suppliers in the world.
