Essar Steel Algoma to redeem remaining 9 3/8% notes at par on Dec. 15

By Marisa Wong

Madison, Wis., Nov. 14 – Essar Steel Algoma Inc. said it has called for redemption all of its 9 3/8% senior secured notes due 2015 that remain outstanding following completion of its tender offer for the notes.

The outstanding notes will be redeemed at par plus accrued interest to, but excluding, the redemption date, which is expected to be Dec. 15.

Essar Steel Algoma also announced that it completed a comprehensive recapitalization and refinancing on Friday.

The company raised a total of over $1.2 billion, which includes equity of $466 million comprised of cash contributions, preference shares and proceeds from the sale of port assets, debt of $750 million comprised of a $375 million term loan and $375 million of senior secured notes and exchanged junior secured notes for $252 million. The company also announced a new $50 million revolver.

Essar Steel Algoma is based in Sault Ste. Marie, Ont., and manufactures hot and cold rolled steel products.

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