Severstal, WCI Steel combine

By Lisa Kerner

Charlotte, N.C., July 7 - OAO Severstal acquired all of the outstanding equity of WCI Steel Inc. for a total cash consideration of $140 million.

WCI Steel shareholders will receive about $3.29 per share in cash, a WCI Steel news release said.

In connection with the acquisition, WCI Steel called for redemption all of the $100 million total principal amount outstanding of its 8% senior secured notes due 2016.

Moelis & Co. advised WCI Steel, and Severstal was advised by Citi and Raymond James.

WCI Steel, a Warren, Ohio-based producer of value-added, custom steel products, is not currently a public reporting company.

Severstal is a Moscow-based metals and mining company.

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