AK Steel Holding Corp. on Aug. 2 priced its previously announced offering of US$280.0 million aggregate principal amount of 6.375% senior notes due 2025.
The notes, which will mature Oct. 15, 2025, will require payment of semiannual interest on April 15 and Oct. 15 each year. Interest on the newly issued notes will accrue from Aug. 9.
Additionally, the notes will be fully and unconditionally guaranteed by AK Steel subsidiaries AK Tube LLC, AK Steel Properties Inc. and Mountain State Carbon LLC and parent AK Holding Corp.
The company will use the net proceeds together with cash on hand and the borrowings under its revolving credit facility to finance the cash tender offer to buy back any and all of its outstanding 8.375% senior secured notes due in 2022.
Following the completion of the cash tender offer, if any old notes remain outstanding, AK Steel intends to promptly redeem such notes.
The offering is expected to close Aug. 9.