Claymont Steel calls $170.1 million floaters due 2010

By Angela McDaniels

Seattle, Feb. 15 - Claymont Steel Holdings, Inc. said it will redeem the $170.1 million principal amount outstanding of its senior secured floating-rate notes due 2010 on March 19.

The company will pay 103% of par plus accrued interest through the redemption date.

The total cost to redeem the notes will be about $187.3 million, according to a company news release.

Claymont will fund the redemption with credit facility borrowings, the proceeds of subsidiary Claymont Steel, Inc.'s $105 million offering of 8 7/8% senior notes due 2015 and $30 million of existing cash.

The company said the redemption is one component of its 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.

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

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