AK Steel to call $225 million of 7 7/8% notes

By Laura Lutz

Indianapolis, Jan. 23 - AK Steel plans to redeem $225 million of its $450 million outstanding principal amount of 7 7/8% senior notes due Feb. 15, 2009.

Funding will come from the company's existing cash reserves.

The redemption is expected to be completed in the first quarter of 2007.

Subject to market conditions, the company said it expects to redeem the remainder of the notes by the end of the first quarter of 2008.

In other news, the company announced that it plans to obtain an $850 million, five-year revolving credit facility with a syndicate of lenders, which Banc of America Securities LLC as the sole lead arranger.

AK Steel is a steel producer based in Middletown, Ohio.

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