WEST CHESTER, Ohio,
Nov. 20, 2012 /PRNewswire/ -- AK
Steel Holding Corporation (NYSE: AKS) ("AK Steel") said today it
has successfully completed securities offerings of $588 million before underwriting fees and other
expenses. The offerings included $350
million of 8.750% senior secured notes due 2018 and
$150 million of 5.00% exchangeable
senior notes due 2019, each of which were issued by AK Steel
Corporation, as well as 22 million shares of AK Steel common stock
with an aggregate value of $88
million.
"These offerings are part of our broad-based strategy at AK
Steel to strengthen the company and build value for our
shareholders," said James L.
Wainscott, Chairman, President and CEO of AK Steel.
"The offerings fortify AK Steel's balance sheet and enhance the
company's liquidity and financial flexibility." He noted that
AK Steel's liquidity improved significantly as a result of the
offerings, nearly doubling to approximately $1.2 billion.
Mr. Wainscott indicated that AK Steel will use the proceeds from
the offerings to repay borrowings under its asset-backed revolving
credit facility and for general corporate purposes. He added
that the offerings will help AK Steel: grow in its core
value-added markets where the company is a major player; support
the company's raw materials strategic investments to bolster
long-term competitiveness; and, optimize capital investments and
working capital utilization. The securities offerings were
launched on November 13, 2012, and
completed on November 20, 2012.
Additional Information
The senior secured notes
were not registered under the Securities Act of 1933, as amended
(the "Securities Act") or the securities laws of any other
jurisdiction. As a result, they may not be offered or sold in
the United States or to any U.S.
persons except pursuant to an applicable exemption from, or in a
transaction not subject to, the registration requirements of the
Securities Act. The senior secured notes were offered only to
qualified institutional buyers pursuant to Rule 144A under the
Securities Act and to non-U.S. persons outside the United States under Regulation S under the
Securities Act.
AK Steel
AK Steel produces flat-rolled carbon,
stainless and electrical steels, primarily for automotive,
infrastructure and manufacturing, construction and electrical power
generation and distribution markets. The company employs
about 6,200 men and women in Middletown, Mansfield, Coshocton and Zanesville, Ohio; Butler, Pennsylvania; Ashland, Kentucky; Rockport, Indiana; and its corporate
headquarters in West Chester,
Ohio. Additional information about AK Steel is available on
the company's web site at www.aksteel.com.
AK Tube LLC, a wholly-owned subsidiary of AK Steel, employs
about 300 men and women in plants in Walbridge, Ohio and Columbus, Indiana.
AK Tube produces carbon and stainless electric resistance welded
(ERW) tubular steel products for truck, automotive and other
markets. Additional information about AK Tube LLC is
available on its web site at www.aktube.com.
AK Coal Resources, Inc., another wholly-owned subsidiary of AK
Steel, controls and is developing metallurgical coal reserves in
Somerset County,
Pennsylvania. AK Steel also owns 49.9% of Magnetation LLC, a
joint venture headquartered in Grand
Rapids, Minnesota, which produces iron ore concentrate from
previously mined ore reserves.
SOURCE AK Steel Holding Corporation