Steel Mills
Cleveland-Cliffs Continues Process for AK Steel Acquisition
Written by Sandy Williams
January 15, 2020
Cleveland-Cliffs has begun exchanging senior notes issued by AK Steel for notes issued by Cliffs in preparation for the acquisition of the Ohio-based steel company.
“For each $1,000 principal amount of Existing AK Steel Notes validly tendered on Feb. 12, 2020 (the ‘Expiration Date’) and not validly withdrawn, Eligible Holders of Existing AK Steel Notes will be eligible to receive the applicable exchange consideration,” stated the Cliffs announcement.
Cliffs is also seeking consent to adopt changes to the indentures governing the existing notes that will eliminate certain of the covenants, restrictive provisions and events of default.
The acquisition was announced in December with an anticipated closing date in the first half of this year. Cliffs and AK Steel currently expect to extend the expiration date for the notes exchange to coincide with completion of the merger.
The Cliffs/AK Steel combo is expected to provide both companies additional growth opportunities, including the potential restarting of the Ashland blast furnace.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
USS/Nippon deal: Who will have the happiest holidays?
Will Santa bring gifts for the leadership, employees, and shareholders of U.S. Steel and Nippon Steel, and lumps of coal for USW leadership and politicians opposed to the deal?
‘Orderly liquidation’ of AHMSA assets begins
A trustee has formally taken over AHMSA and begun the liquidation process of the bankrupt Mexican steelmaker.
Nippon buying stake in Canadian iron ore project
Nippon Steel and a Japanese trading company have entered an agreement to buy a 49% interest in a Champion Iron ore project in Canada.
USS anticipates Q4 loss on weak demand, BR2 start-up
Amid a challenging pricing and demand environment, and with the ongoing ramp-up of the Big River 2 mill, USS is anticipating a loss for the fourth quarter.
Nucor blames steel mills segment for depressed Q4 guidance
Nucor cited decreased volumes and prices in it steel mills segment as the key driver of its lower guidance for the fourth quarter.