AK Steel Announces Pricing of $150 Million Exchangeable Senior Notes Offering

AK Steel Announces Pricing of $150 Million Exchangeable Senior Notes Offering

PR Newswire

WEST CHESTER, Ohio, Nov. 14, 2012

WEST CHESTER, Ohio, Nov. 14, 2012 /PRNewswire/ --AK Steel Holding Corporation
(NYSE: AKS) ("AK Holding") announced today that its subsidiary, AK Steel
Corporation ("AK Steel"), has successfully priced a public offering of $150
million of 5.00% exchangeable senior notes due 2019 (the "notes"). AK Steel
also agreed to grant the underwriters a 30-day option to purchase up to an
additional $22.5 million aggregate principal amount of notes.

AK Steel will pay interest on the notes semi-annually on May 15 and November
15 of each year, beginning on May 15, 2013, at a rate of 5.00% per annum. The
notes will mature on November 15, 2019. The notes will be fully and
unconditionally guaranteed on a senior unsecured basis by AK Holding. Upon
exchange of the notes, AK Steel will pay cash up to the aggregate principal
amount of the notes to be exchanged and pay or deliver, as the case may be,
cash, shares of AK Holding common stock or a combination of cash and shares of
AK Holding common stock, at AK Steel's election, in respect of the remainder,
if any, of its exchange obligation in excess of the aggregate principal amount
of the notes being exchanged. The exchange rate will initially be 185.1852
shares of AK Holding common stock per $1,000 principal amount of notes (which
is equivalent to an initial exchange price of approximately $5.40 per share of
AK Holding common stock and represents an approximately 35% exchange premium
over the public offering price of the AK Holding common stock offered by AK
Holding in the concurrent public offering described below).

AK Steel intends to use the net proceeds from the sale of the notes to repay
borrowings under its asset-backed revolving credit facility and for general
corporate purposes. The offering is expected to close on November 20, 2012,
subject to customary closing conditions.

Concurrently with this pricing of notes, AK Holding announced the pricing of
its public offering of common stock, agreeing to sell 22 million shares of
common stock at a public offering price of $4.00 per share.

The joint book-running managers for the offering are Credit Suisse, J.P.
Morgan, Citigroup, Wells Fargo Securities, Morgan Stanley and BofA Merrill
Lynch.

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.

A copy of the prospectus supplement and accompanying prospectus for the
offering can be obtained from Credit Suisse at Credit Suisse Securities (USA)
LLC, Prospectus Department, One Madison Avenue, New York, NY 10010,
800-221-1037, or email: newyork.prospectus@credit-suisse.com; J.P. Morgan at
J.P. Morgan Securities LLC, Attn: Broadridge Financial Solutions, 1155 Long
Island Avenue, Edgewood, New York 11717, 866-803-9204; Citigroup at Citigroup
Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island
Avenue, Edgewood, NY 11717, 800-831-9146; Wells Fargo Securities at Wells
Fargo Securities, LLC, Attn: Equity Syndicate Department, 375 Park Avenue, New
York, New York 10152, 800-326-5897, or email: cmclientsupport@wellsfargo.com;
Morgan Stanley at Morgan Stanley & Co. LLC, Attention: Prospectus Department,
180 Varick Street, 2nd Floor, New York, NY 10014, 866-718-1649, or email:
prospectus@morganstanley.com; or BofA Merrill Lynch, Attn: Prospectus
Department, 222 Broadway, New York, NY 10038, or email:
dg.prospectus_requests@baml.com.

Forward-Looking Statements
Some of the statements in this 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 Holding's Annual Report on Form 10-K for the
year ended December 31, 2011 and Quarterly Report on Form 10-Q for the quarter
ended June 30, 2012, as updated in its subsequent Quarterly Reports on Form
10-Q and Current Reports on Form 8-K filed with or furnished to the Securities
and Exchange Commission. Except as required by law, the company disclaims any
obligation to update any forward-looking statements to reflect future
developments or events.

AK Steel
AK Steel produces flat-rolled carbon, stainless and electrical steels,
primarily for automotive, infrastructure and manufacturing, 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.

AK Coal Resources, Inc., another wholly-owned subsidiary of AK Steel, controls
and is developing metallurgical coal reserves in Somerset County,
Pennsylvania. AK Steel also owns 49.9% of Magnetation LLC, a joint venture
headquartered in Grand Rapids, Minnesota, which produces iron ore concentrate
from previously-mined ore reserves.

SOURCE AK Steel Holding Corporation

Contact: Media - Barry L. Racey, Director, Government and Public Relations,
+1-513-425-2749; Investors - Albert E. Ferrara, Jr., Senior Vice President,
Corporate Strategy and Investor Relations, +1-513-425-2888
 
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