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Stelco Reports Interest Rate for Floating Rate Notes
09/28/2007 - The rate of interest per annum for Stelco's floating rate notes due 2016 will be 10.64% for the period from September 30, 2007 to March 30, 2008.
Stelco Inc. announced that, for the period from September 30, 2007 to March 30, 2008 inclusive, the rate of interest per annum for Stelco's floating rate notes due 2016 will be 10.64%.
This interest rate, which has been established in accordance with the terms of the indenture governing the Notes, is subject to adjustment in certain circumstances.
As previously announced by Stelco (September 19, 2007), United States Steel Corp. has specified that the Notes are to be redeemed on the effective date of the 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.
If approved by shareholders and the Ontario Superior Court of Justice, the proposed 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. U. S. Steel has specified to Stelco that if the proposed 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 of the proposed arrangement payable under terms of the Indenture 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.
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.
