AK Steel enters restated $1.35 billion five-year revolving facility

By Marisa Wong

Morgantown, W.Va., Sept. 15 – AK Steel Corp. entered into an amended and restated $1.35 billion five-year senior secured revolving credit facility on Sept. 13, according to an 8-K filed Friday with the Securities and Exchange Commission.

The facility includes a $1,285,000,000 asset-based revolver and a $65 million first-in, last-out asset-based facility.

Bank of America, NA, JPMorgan Chase Bank, NA and Wells Fargo Capital Finance, LLC are joint lead arrangers and bookrunners; Bank of America is agent; JPMorgan Chase Bank and Wells Fargo Capital Finance are co-syndication agents; and Deutsche Bank Securities Inc. and Fifth Third Bank are co-documentation agents.

The restated credit facility, which matures on Sept. 13, 2022, includes a $100 million swingline sublimit and a $300 million letter-of-credit sublimit.

The revolving credit line may be increased by up to $400 million, up to $100 million of which may be incurred under a foreign incremental revolver by AK Steel subsidiaries organized under the laws of Canada, England and Wales, the Netherlands or Germany.

Availability is subject to a borrowing base calculated using the company’s eligible inventories and eligible accounts receivable. In addition, availability is reduced by outstanding letters of credit.

Borrowings under the amended facility will bear interest at Libor plus a margin based on the average daily availability of borrowings under the facility. The margin for revolver borrowings ranges from 125 basis points to 150 bps. The margin for borrowings under the first-in, last-out facility ranges from 225 bps to 250 bps.

In addition, the company will pay a commitment fee on the undrawn commitments ranging from 25 bps to 35 bps, depending on the average daily balance of borrowings.

All loans outstanding under the company’s existing credit facility dated March 17, 2014 were converted into loans under the amended and restated credit facility immediately prior to closing.

AK Steel is a West Chester, Ohio-based steel producer.

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