U.S. Steel to call Stelco's floating-rate notes

By Susanna Moon

Chicago, Sept. 19 - Stelco Inc. said that its floating-rate notes due 2016 would be redeemed under terms of an agreement with United States Steel Corp.

The agreement is subject to approval at a shareholders meeting on Oct. 26. If passed, it is expected to be completed on Oct. 31.

For each $1,000 principal amount, the redemption amount will be par plus a $100 premium and accrued interest until the payment date and an additional 30 days of interest, according to a press release.

On Aug. 27 U.S. Steel announced it agreed to buy Stelco Inc. for C$38.50 per share.

U.S. Steel said at the time it planned to finance the deal and to retire about $760 million of Stelco debt using cash on hand, existing liquidity facilities and proceeds under two new fully committed senior credit facilities totaling $900 million.

U.S. Steel is an integrated steel producer based in Pittsburgh.

Stelco is a Hamilton, Ont., steel company.

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