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Stelco Holdings Inc. is listed on the TSX under the symbol "STLC"

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Stelco completes refinancing US$270 million term loan

    HAMILTON, ON, May 9 /CNW/ - Stelco Inc. (TSX: STE) announced today that
it has completed a US$270 million (Cdn$297 million at closing) funded term
loan refinancing with GE Corporate Lending Canada, which was arranged by GE
Capital Markets, Inc. Significant market interest for the term loan allowed
Stelco to increase the amount of the facility from the US dollar equivalent of
Cdn$275 million, as previously announced on April 9, 2007, to US$270 million.
The new facility refinances Stelco's Cdn$375 million revolving term loan with
a more traditional facility that has significantly lower interest rates and
fees. The new facility has a six year term and bears interest at a floating
rate equal to a US base rate + 1 % or LIBOR + 3.5%, depending on the nature of
the loan instrument incurred. The new term loan is secured by a first priority
interest in the fixed assets of Stelco and a second priority interest on the
working capital assets. The term loan includes typical covenants, as well as a
financial covenant based on achieving a minimum EBITDA threshold for Stelco's
Lake Erie Steel business. Subject to certain conditions, the new term loan is
prepayable, in part or in whole, at any time without penalty. Stelco paid an
underwriting fee in connection with the refinancing.
    As previously announced, by completing this refinancing prior to May 11,
2007, Stelco was not required to pay the $11.25 million annual fee otherwise
payable under the refinanced facility.
    "We are very pleased with the confidence that our lenders have shown in
Stelco. The completion of the second phase of our debt refinancing positions
us well for the future and we will continue to pursue opportunities to enhance
our capital structure," said Rodney Mott, President and Chief Executive
Officer.

    About Stelco

    Stelco is one of Canada's largest steel companies. It is focused on its
two Ontario-based integrated steel businesses located in Hamilton and in
Nanticoke. These operations produce high quality value-added hot rolled, cold
rolled, coated sheet and bar products. To learn more about Stelco and its
businesses, please refer to our Web site at www.stelco.com.

    About GE Corporate Lending

    With $14 billion in assets, GE Corporate Lending is one of North
America's largest providers of asset-based, cash flow, structured finance and
other financial solutions for mid-size and large companies.

    CAUTION REGARDING FORWARD-LOOKING INFORMATION

    This press release contains "forward-looking information" that is based
on Stelco's expectations, estimates and projections as of the date of this
press release or as of the date which such information is identified to be
given. This forward-looking information includes, among other things, factors
relating to the business, financial position, operations and prospects of
Stelco, including the anticipated benefits of Stelco's new loan arrangements.
Often, but not always, forward-looking information can be identified by the
use of words and phrases such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or "believes", or variations of such
words and phrases or states that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking information involves known and unknown risks, uncertainties
and other factors which may cause the actual results, performance or
achievements of Stelco to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking
information. Actual results, performance and achievements may differ, and may
differ materially, from those expressed or implied by the forward-looking
information contained herein. Such forward-looking information is based on a
number of assumptions which may prove to be incorrect, including the continued
satisfaction of covenants and other requirements in Stelco's new loan
arrangements. While Stelco anticipates that subsequent events and developments
may cause Stelco's views to change, Stelco specifically disclaims any
obligation to update this forward-looking information. This forward-looking
information should not be relied upon as representing Stelco's views as of any
date subsequent to the date of this press release.

    %SEDAR: 00001549E



For further information:
For further information: J. Kenneth Rutherford, Chief Financial Officer,
Stelco Inc., (905) 528-2511, Extension 2022

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