Business
Dofasco proposes to redeem its medium term notes
Dofasco proposes to redeem its medium term notes.
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[{"type":"text","content":"\n\n\n\nHAMILTON, ON, April 9 /CNW/ - Dofasco announced today that it plans to\nseek written consent from Canadian noteholders for approval of amendments to\npermit it to redeem all of its outstanding 7.55% unsecured medium term notes\ndue October 1, 2008 at a price equal to the Government of Canada Yield and its\n4.961% unsecured medium term notes due June 15, 2017 at a price equal to par.\nWith the consent of the noteholders, Dofasco will amend the terms of the notes\nto permit their redemption and to reduce the notice period required for such\nredemption. The applicable trust indentures require the written consent of at\nleast 66 2/3% of the principal amount of the notes in order to effect the\namendments.\n\n\nRBC Dominion Securities Inc. ("RBC DS") has indicated that it intends to\nacquire 66 2/3% or more of the notes in the open market from Canadian\nnoteholders, if available, at the prices noted above. RBC DS has also\nindicated to Dofasco that, if RBC DS purchases a principal amount of notes\nequal to or greater than 66 2/3% of each issue of notes, RBC DS will consent\nto the necessary amendments to permit the redemption of the notes. The\naggregate face value of the notes is $375 million. Further announcements if\nnecessary will be made with additional information when available.\n\n\nDofasco is a leading North American steel solutions provider. Product\nlines include hot rolled, cold rolled, galvanized, Extragal(TM), Galvalume(TM)\nand tinplate flat rolled steels, as well as tubular products and laser-welded\nblanks. Dofasco's wide range of steel products is sold to customers in the\nautomotive, construction, energy, manufacturing, pipe and tube, appliance,\npackaging and steel distribution industries.\n\n\n","length":1787,"tagName":"div"}]