AK Steel Announces Completion of Exchange Offer for Its Senior Secured Notes

Aug 29, 2013, 08:35 ET from AK Steel

WEST CHESTER, Ohio, Aug. 29, 2013 /PRNewswire/ -- AK Steel Holding Corporation (NYSE: AKS) ("AK Holding") announced today that its subsidiary, AK Steel Corporation ("AK Steel"), has completed its offer to exchange (the "Exchange Offer") up to $380.0 million in aggregate principal amount of its 8.750% senior secured notes due 2018 (the "Initial Notes"), not registered under the Securities Act of 1933, as amended, for an equal aggregate principal amount of its registered 8.750% senior secured notes due 2018 (the "New Notes").  The Exchange Offer expired at 5:00 p.m., Eastern Daylight Time, on August 28, 2013.  All of the Initial Notes were submitted for exchange, and AK Steel has accepted for exchange all the Initial Notes validly tendered and not withdrawn pursuant to the Exchange Offer.

The Exchange Offer was made pursuant to Registration Rights Agreements entered into by AK Steel and AK Holding when AK Steel issued the Initial Notes on November 20, 2012 and June 24, 2013.  AK Steel issued the Initial Notes in private placement transactions and they were subject to transfer restrictions.  The purpose of the Exchange Offer was to allow holders of the Initial Notes to exchange their Initial Notes for New Notes not subject to these restrictions. AK Steel did not receive any proceeds from the Exchange Offer.

The terms of the New Notes are substantially the same as the terms of the Initial Notes, except that the New Notes are registered under the Securities Act of 1933, as amended, have no transfer restrictions under the federal securities laws, no registration rights and no rights to additional interest.

This announcement does not constitute an offer to purchase or a solicitation of an offer to sell securities. The Exchange Offer was made only pursuant to a prospectus and the related letter of transmittal and only to such persons and in such jurisdictions as is permitted under applicable law.

Forward-Looking Statements Some of the statements in this release are intended to be, and hereby are identified as "forward-looking statements" for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  The company cautions readers that such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those currently expected by management, including those risks and uncertainties discussed in AK Holding's Annual Report on Form 10-K for the year ended December 31, 2012, its subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with or furnished to the Securities and Exchange Commission.  Except as required by law, the company disclaims any obligation to update any forward-looking statements to reflect future developments or events.

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 6,100 men and women in Middletown, Mansfield, Coshocton and Zanesville, Ohio; Butler, Pennsylvania; Ashland, Kentucky; Rockport, Indiana; and its corporate headquarters in West Chester, Ohio. 

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.

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.