AK Steel gets needed consents, accepts early tenders for $320.8 million of 7¾% notes

By Jennifer Chiou

New York, May 10 - AK Steel Holding Corp. announced that it received early tenders from holders of $320.8 million of its $400 million of 7¾% senior notes due 2012.

The company added that it accepted the notes that were tendered prior to 5 p.m. ET on May 7, the consent deadline.

AK Steel is also soliciting consents to eliminate substantially all of the restrictive covenants and events of default, and it obtained consents from holders of 63.6% of the notes, enough to amend the indenture. That said, AK will execute a supplemental indenture.

The company paid $1,003.50 per $1,000 principal amount of notes, including a consent payment of $30.00 per $1,000 principal amount of notes tendered by the early deadline.

The tender offer will end at 11:59 p.m. ET on May 21. It began on April 26.

The proposed amendments required the approval of a majority of the outstanding notes.

AK Steel previously said the offer is subject to the issuance of $400 million principal amount of senior notes due 2020.

The joint bookrunners are Credit Suisse, Bank of America Merrill Lynch, J.P. Morgan Securities Inc., Morgan Stanley, UBS Investment Bank and Wells Fargo Securities.

Credit Suisse (800 820-1653 or 212 325-5912) and Bank of America Merrill Lynch (888 292-0070 or 980 388-9217) are dealer managers for the tender offer. Global Bondholder Services Corp. (866 488-1500) is the information agent.

The company is a West Chester, Ohio-based producer of flat-rolled carbon, stainless and electrical steels and tubular products.

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