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AK Steel completes securities offerings of USD 588 million
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Thursday, 22 Nov 2012

AK Steel Holding Corporation announced that it has successfully completed securities offerings of USD 588 million before underwriting fees and other expenses. The offerings included USD 350 million of 8.750% senior secured notes due 2018 and USD 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 USD 88 million.

Mr James L Wainscott chairman, president & CEO of AK Steel said that "These offerings are part of our broad based strategy at AK Steel to strengthen the company and build value for our shareholders. 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 USD 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 13th 2012 and completed on November 20th 2012.

Source - AK Steel Holding Corporation


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