Claymont Steel plans to redeem floaters due 2010

By Angela McDaniels

Seattle, Feb. 5 - Claymont Steel Holdings, Inc. said it plans to redeem its outstanding senior secured floating-rate notes due 2010 at 103 plus accrued interest.

The total redemption price of the notes on Feb. 28 would be $186.2 million.

The redemption is part of the company's plan to refinance its existing debt and further reduce its cost of debt following the redemption of its 15% pay-in-kind notes on Feb. 1, according to a company news release.

The company will fund the redemption of the floating-rate notes with proceeds from its subsidiary Claymont Steel, Inc.'s proposed $105 million offering of senior notes due 2015 and new $80 million senior secured credit facility.

Claymont Steel is based in Claymont, Del., where it manufactures and sells custom discrete steel plates.

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