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Stelco Announces Details of Proposed Notes Redemption
09/20/2007 - U. S. Steel specifies that Stelco's floating-rate notes due 2016 are to be redeemed on the effective date of the companies’ proposed arrangement under Section 192 of the Canada Business Corporations Act involving Stelco, U.S. Steel and 1344973 Alberta ULC, an indirect wholly owned subsidiary of U.S. Steel.
Stelco Inc. announced that U. S. Steel has specified that Stelco's floating-rate notes due 2016 are to be redeemed on the effective date of the companies’ proposed arrangement under Section 192 of the
Canada Business Corporations Act involving Stelco, U.S. Steel and 1344973 Alberta ULC, an indirect wholly owned subsidiary of U.S. Steel.
Stelco’s Arrangement Agreement with U.S. Steel will be submitted for approval at the corporation’s special meeting of shareholders to be held on October 26, 2007. The Arrangement is subject to approval by the Ontario Superior Court of Justice.
U. S. Steel has specified to Stelco that if the Arrangement closes, the redemption amount for each U.S.$1,000 principal amount of Notes will be the aggregate of U.S.$1,000 plus all accrued and unpaid interest thereon to but excluding the Effective Date payable under the terms of the indenture governing the Notes plus U.S.$100, representing the premium payable under the terms of the Indenture, plus 30 days of additional interest in lieu of notice under the Indenture.
If approved by shareholders and the Court, the Arrangement is expected to be completed on or about October 31, 2007, subject to the satisfaction of the conditions to closing set out in the agreement between the parties.
Stelco, one of Canada's largest steel companies, is focused on its two Ontario-based integrated steel businesses located in Hamilton and in Nanticoke. These operations produce high-quality value-added hot rolled, cold rolled, coated sheet and bar products.
