New Issue: AK Steel sells upsized $300 million 8 3/8% 10-year notes at par

By Paul A. Harris

Portland, Ore., March 19 - AK Steel Corp. priced an upsized $300 million issue of 10-year senior notes (B2/BB-/) at par to yield 8 3/8% on Monday, according to a syndicate source.

The yield printed at the tight end of the 8 3/8% to 8½% yield talk,

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Wells Fargo Securities, LLC were the joint bookrunners for the quick-to-market issue, which was upsized from $250 million.

The West Chester, Ohio-based steel producer plans to use the proceeds to repay revolver debt.

Issuer:	AK Steel Corp.
Amount:	$300 million, increased from $250 million
Maturity:	April 1, 2022
Securities:	Senior notes
Bookrunners:	Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Wells Fargo Securities, LLC
Co-managers:	Morgan Stanley & Co. LLC, Barclays Capital Inc., FBR Capital Markets & Co., Fifth Third Securities, Inc., Goldman Sachs & Co., PNC Capital Markets LLC, UBS Securities LLC
Coupon:	8 3/8%
Price:	Par
Yield:	8 3/8%
Spread:	601 bps
Call features:	Make-whole call at Treasuries plus 50 bps until April 1, 2017, then callable at 104.188, 102.792, 101.396, par on and after April 1, 2020
Equity clawback:	35% at 108.375 until April 1, 2015
Trade date:	March 19
Settlement date:	March 22
Ratings:	Moody's: B2
	Standard & Poor's: BB
Distribution:	SEC registered
Price talk:	8 3/8% to 8½%
Marketing:	Quick to market

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