New Issue: AK Steel prices $400 million 10-year notes at par to yield 7 5/8%

By Paul A. Harris

St. Louis, April 27 - AK Steel Corp. priced a $400 million issue of 10-year senior notes (Ba3/BB/) at par to yield 7 5/8% on Tuesday, according to a market source.

The yield printed in the middle of the 7½% to 7¾% price talk.

Credit Suisse and Bank of America Merrill Lynch were the joint bookrunners.

Proceeds will be used to fund the tender for AK Steel's 7¾% senior notes due 2012.

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

Issuer:	AK Steel Corp.
Amount:	$400 million
Maturity:	May 1, 2020
Securities:	Senior notes
Bookrunners:	Credit Suisse, Bank of America Merrill Lynch
Coupon:	7 5/8%
Price:	Par
Yield:	7 5/8%
Spread:	394 bps
Call protection:	Callable on May 15, 2015 at 103.813, 102.542, 101.271, par on and after May 15, 2018
Change-of-control put:	101%
Trade date:	April 27
Settlement date:	May 11
Ratings:	Moody's: Ba3
	Standard & Poor's: BB
Distribution:	SEC registered
Price talk:	7½% to 7¾%

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