Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers A > Headlines for AK Steel Holding Corp. > News item |
AK Steel amends ABL facility, to repay debt via notes, stock proceeds
By Ashley Montgomery
Kansas City, Kan., Nov. 13 - AK Steel Holding Corp. announced an amendment to its existing $1.1 billion asset-backed credit facility and plans to repay borrowings under the facility, according to a series of news releases and an 8-K filing with the Securities and Exchange Commission.
The amendment permits debt to be incurred in connection with subsidiary AK Steel Corp.'s offering of senior secured and exchangeable senior notes; liens to be granted pursuant to the senior secured notes; exchange of the exchangeable senior notes for shares of common stock of the parent company; and entering into of the indenture and related documents pursuant to which the senior secured notes will be issued.
The company said it plans to repay borrowings under the facility with the proceeds from common stock and note offerings.
AK Steel Corp. is offering $350 million of senior secured notes due 2018 and $125 million of exchangeable senior notes due 2019. The exchangeable notes are expected to carry an over-allotment option for an additional $18.75 million. Both issues will by guaranteed by the parent company.
AK Steel Holding Corp. is issuing 25 million shares of common stock with an over-allotment option for another 3.75 million shares.
Proceeds from the note and common stock issues will also be used for general corporate purposes.
West Chester, Ohio-based AK Steel makes carbon, stainless and electrical steels.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.