AK Steel plans tender offer, consent bid for $400 million 7¾% notes

By Susanna Moon

Chicago, April 26 - AK Steel Holding Corp. said it plans to begin a cash tender offer and consent solicitation for any and all of its outstanding 7¾% senior notes due 2012.

AK Steel is soliciting consents to eliminate substantially all of the restrictive covenants and events of default.

The company will pay $1,003.50 per $1,000 principal amount of notes, including a consent payment of $30.00 per $1,000 principal amount of notes tendered by 5 p.m. ET on May 7.

The tender offer will end at 11:59 p.m. ET on May 21.

Holders may not tender their notes without delivering their consents or vice versa.

The proposed amendments require the approval of a majority of the outstanding notes.

AK Steel said the offer is subject to the issuance of $400 million principal amount of senior notes due 2020.

The joint bookrunners are Credit Suisse, Bank of America Merrill Lynch, J.P. Morgan Securities Inc., Morgan Stanley, UBS Investment Bank and Wells Fargo Securities.

Credit Suisse (800 820-1653 or 212 325-5912) and Bank of America Merrill Lynch (888 292-0070 or 980 388-9217) are dealer managers for the tender offer. Global Bondholder Services Corp. (866 488-1500) is the information agent.

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

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