AK Steel to redeem remaining $150 million 7 7/8% senior notes due 2009

By Devika Patel

Knoxville, Tenn., July 24 - AK Steel Corp. announced it will redeem the remaining $150 million of its outstanding 7 7/8% senior notes due Feb. 15, 2009.

The company redeemed $225 million of the original $450 million of notes on March 2 and another $75 million on May 31.

The company said the redemption of the remaining $150 million of the notes will be funded from the company's existing cash reserves, and is expected to be completed in August.

AK Steel said it expects to incur a non-cash pre-tax charge of approximately $0.6 million in the third quarter because of the redemption. However, the company expects to realize a net benefit of $1.5 million in 2007 and approximately $4.3 million in 2008 from the redemption.

"Enhancing shareholder value by reducing our debt to strengthen our balance sheet continues to be a high priority for AK Steel," chairman, president and chief executive officer James L. Wainscott said in a press release.

AK Steel is a Middletown, Ohio, steel producer.

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