Daily News: March 18, 2014

BofA, J.P. Morgan, Wells Arrange $1.1B AK Steel Facility

AK Steel said that it entered into a new $1.1 billion, five-year revolving credit facility with a group of lenders. The new credit facility will expire in March 2019. Bank of America, J.P. Morgan Securities and Wells Fargo Capital Finance acted as joint lead arrangers.

The new credit facility is secured by most of the company’s inventory and A/R. It replaces the company’s existing $1.1 billion credit facility, which was set to expire in April 2016 and was secured by the same classes of assets as the new credit facility. The new credit facility will provide the company with enhanced liquidity and greater financial and strategic flexibility. It will be used for working capital and general corporate purposes.

West Chester, OH-headquartered AK Steel produces flat-rolled carbon, stainless and electrical steels, primarily for automotive, infrastructure and manufacturing, construction and electrical power generation and distribution markets.

AK Tube, a wholly owned subsidiary of AK Steel, employs about 300 men and women in plants in Walbridge, OH, and Columbus, IN.

AK Coal Resources, another wholly owned subsidiary of AK Steel, produces metallurgical coal from reserves in Somerset County, PA.

AK Steel also owns 49.9% of Grand Rapids, MN-headquartered Magnetation, a joint venture that produces iron ore concentrate from previously mined ore reserves.