December 02, 2008

Stelco announces details of proposed redemption of floating rate notes

Stelco Inc has announced that pursuant to the terms of the arrangement agreement with United States Steel Corporation, US Steel has specified that Stelco's floating rate notes due 2016 are to be redeemed on the effective date of the proposed arrangement under Section 192 of the Canada Business Corporations Act involving Stelco, US Steel and 1344973 Alberta ULC an indirect wholly owned subsidiary of US Steel.

The released said the Arrangement Agreement will be submitted for approval at the special meeting of shareholders of the Corporation to be held on October 26th 2007. The Arrangement is subject to approval by the Ontario Superior Court of Justice. If approved by shareholders and the Court, the Arrangement is expected to be completed on or about October 31st 2007 subject to the satisfaction of the conditions to closing set out in the agreement between the parties.

US Steel has specified to Stelco that if the Arrangement closes, the redemption amount for each USD 1,000 principal amount of Notes will be the aggregate of USD 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 USD 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 is one of Canada's largest steel companies. It 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