New Issue: AK Steel prices $280 million eight-year notes at par to yield 6 3/8%

By Paul A. Harris

Portland, Ore., Aug. 2 – AK Steel Corp. priced a $280 million issue of eight-year senior notes (B3/B-) at par to yield 6 3/8% on Wednesday, according to a syndicate source.

The yield printed at the tight end of yield talk.

Wells Fargo Securities LLC is the left bookrunner. Deutsche Bank Securities Inc., Goldman Sachs & Co., BofA Merrill Lynch, Barclays, BMO Securities, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and KeyBanc Capital Markets LLC were the joint bookrunners.

The West Chester Township, Ohio-based steel producer plans to use the proceeds to refinance its 8 3/8% senior notes due 2022.

AK Steel produces carbon, stainless and electrical flat-rolled steel for the automotive, manufacturing and other markets.

Issuer:	AK Steel Corp.
Amount:	$280 million
Maturity:	Oct. 15, 2025
Securities:	Senior notes
Left bookrunner:	Wells Fargo Securities, LLC
Joint bookrunners:	Deutsche Bank Securities Inc., Goldman Sachs & Co., BofA Merrill Lynch, Barclays, BMO Capital Markets Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, KeyBanc Capital Markets LLC
Co-managers:	Citizens Capital Markets Inc., Fifth Third Securities Inc., ING Financial Markets LLC, PNC Capital Markets LLC, Regions Securities LLC, U.S. Bancorp Investments Inc.
Coupon:	6 3/8%
Price:	Par
Yield:	6 3/8%
Spread:	419 bps
Call:	Make-whole call until Oct. 15, 2020, then callable at 103.188
Trade date:	Aug. 2
Settlement date:	Aug. 9
Ratings:	Moody's: B3
	S&P: B-
Distribution:	SEC registered
Price talk:	6½% area
Marketing:	Quick to market

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