AK Steel's $350 million six-year secured notes talked with 8½% area yield, pricing Wednesday

By Paul A. Harris and Aleesia Forni

Columbus, Ohio, Nov. 14 - AK Steel Corp. plans to issue $350 million senior secured notes due 2018 (B1/BB-) on Wednesday with yield talked in the 8½% area, a market source said.

Books close at 3:30 p.m. ET.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Wells Fargo Securities LLC, Goldman Sachs & Co. and UBS Investment Bank are the joint bookrunners.

Fifth Third Securities Inc. and SG CIB are the co-managers for the Rule 144A with registration rights deal.

The notes will be callable in three years at par plus 50% of the coupon and carry a 101% poison put.

Proceeds will be used to repay the company's existing ABL facility and for general corporate purposes.

The integrated producer of flat-rolled carbon, specialty stainless and electrical steels and tubular products is based in West Chester, Ohio.

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