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Stelco-Tricap Agreement Filed with Court

09/30/2005 - Stelco Inc. announced that its restructuring agreement with Tricap Management Limited was filed with the Court Wednesday evening (Sep. 28) as part of the Motion Record for a hearing scheduled for October 3, 2005.

Under the restructuring agreement, Tricap will provide Stelco with a $350 million secured revolving term loan and a standby commitment to support a rights offering for Secured Convertible Notes to be issued by Stelco.

The rights offering, which should generate $75 million in proceeds, could result in an additional $25 million proceeds if Tricap exercises its option to purchase additional Secured Convertible Notes.

Stelco Inc. announced that its restructuring agreement with Tricap Management Limited was filed with the Court Wednesday evening (Sep. 28) as part of the Motion Record for a hearing scheduled for October 3, 2005.

The agreement filed with the Court contains the provisions, conditions and schedules surrounding Tricap's funding commitment. The Motion Record also contains an affidavit of Hap Stephen, Stelco's Chief Restructuring Officer, concerning the agreement.

Stelco is scheduled to be in Court on October 3, 2005 to seek the Court's authorization to enter into the Tricap agreement.

Stelco Inc. is a large, diversified steel producer involved in major segments of the steel industry through its integrated steel business, minimills, and manufactured products businesses.