Stelco Holdings Inc. is listed on the TSX under the symbol "STLC"
Stelco Inc. - Proposed term loan refinancing
HAMILTON, ON, April 9 /CNW/ - Stelco Inc. (TSX: STE) announced today that it has entered into a commitment letter with GE Corporate Lending Canada relating to a proposed refinancing of Stelco's existing revolving term loan. The proposed refinancing would replace Stelco's existing revolving term loan with a fully drawn facility in a US dollar amount equivalent to $275 million having a term of six years. The new facility would have a significantly lower interest rate and fees compared to Stelco's existing revolving term loan. The completion of the refinancing is subject to a number of conditions which must be satisfied no later than May 11, 2007. In relation to this refinancing, Stelco has entered into an agreement with its lender for the existing revolving term facility to defer payment of the annual fee otherwise payable thereunder on March 31, 2007 until May 11, 2007. Under the agreement, if the existing revolving term credit facility is repaid by May 11, 2007, the deferred fee will be waived. "This financing, in addition to our recently enhanced asset based loan facility, provides a favourable long term debt structure for Stelco and is expected to reduce our financing costs", 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 Commercial Finance 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 Stelco's plans to refinance its existing revolving term loan. 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 are likely to 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, but not limited to, the ability of Stelco to negotiate a satisfactory credit agreement and the satisfaction of the other conditions to the completion of the refinancing. 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 2926