AK Steel Announces Pricing of $400 Million Senior Notes Offering

WEST CHESTER, Ohio, April 27 /PRNewswire-FirstCall/ -- AK Steel Holding Corporation (NYSE: AKS) ("AK Holding") announced today that its subsidiary, AK Steel Corporation ("AK Steel"), has successfully priced a $400 million underwritten public offering of its 7 5/8% senior notes due 2020.

AK Steel will pay interest on the notes semi-annually on May 15th and November 15th of each year, beginning on November 15, 2010.  The notes will be fully and unconditionally guaranteed on a senior unsecured basis by AK Holding. AK Steel intends to use the net proceeds from the sale of the notes, together with cash on hand, to finance AK Steel's cash tender offer and consent solicitation, announced on April 26, 2010, for any and all of AK Steel's outstanding 7 3/4% Senior Notes due 2012.  The offering is expected to close on May 11, 2010, subject to customary closing conditions.

This announcement does not constitute an offer to sell or the solicitation of an offer to buy the notes in the offering, nor shall there be any sale of such notes in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. 

The joint book-running managers for the Offering are Credit Suisse, BofA Merrill Lynch, J.P. Morgan, Morgan Stanley, UBS Investment Bank and Wells Fargo Securities.  A copy of the prospectus for the offering can be obtained from Credit Suisse at Attention: Prospectus Department, One Madison Avenue, New York, NY 10171; BofA Merrill Lynch at Attention: Prospectus Department, One Bryant Park, New York, NY, 10036 ([email protected]); J.P. Morgan at J.P. Morgan Securities Inc., 383 Madison Avenue, New York, New York 10179; Morgan Stanley at [email protected]; UBS Investment Bank at Attention: Leveraged Capital Markets, 677 Washington Blvd., Stamford, Connecticut 06901; or Wells Fargo Securities at Wells Fargo Securities, LLC, Attention: Syndicate Operations; 1525 West W.T. Harris Blvd., MAC D1109-010, Charlotte, North Carolina, 28262.

Forward-Looking Statements

Some of the statements in this press release are intended to be, and hereby are identified as "forward-looking statements" for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  The company cautions readers that such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those currently expected by management, including those risks and uncertainties discussed in AK Steel Holding Corporation's Annual Report on Form 10-K for the year ended December 31, 2009, AK Steel Holding Corporation's Quarterly Reports on Form 10-Q for the quarter ended March 31, 2010.  Except as required by law, the company disclaims any obligation to update any forward-looking statements to reflect future developments or events.

About AK Steel

AK Steel produces flat-rolled carbon, stainless and electrical steels, primarily for automotive, appliance, construction and electrical power generation and distribution markets.  The company employs about 6,200 men and women in Middletown, Mansfield, Coshocton and Zanesville, Ohio; Butler, Pennsylvania; Ashland, Kentucky; Rockport, Indiana; and its corporate headquarters in West Chester, Ohio.  

AK Tube LLC, a wholly owned subsidiary of AK Steel, employs about 300 men and women in plants in Walbridge, Ohio and Columbus, Indiana.  AK Tube produces carbon and stainless electric resistance welded (ERW) tubular steel products for truck, automotive and other markets.  

SOURCE AK Steel Holding Corporation