Algoma Steel sets talk for $450 million eight-year notes at 9¾%-10%

By Paul A. Harris

St. Louis, June 11 - Algoma Steel Inc. set price talk for its $450 million offering of eight-year senior unsecured notes (Caa1/B-) at 9¾% to 10% on Monday, according to an informed source.

Books are set to close at 11 a.m. ET on Wednesday with the notes expected to price Wednesday afternoon.

UBS Investment Bank has the books for the Rule 144A and Regulation S with registration rights deal.

The notes will come with four years of call protection.

The Sault Ste. Marie, Ont.-based steel producer will also put in place an $850 million credit facility.

Proceeds will be used to help fund Indiana-based Essar Steel Holdings Ltd.'s acquisition of the company for C$1.85 billion.

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