Business
Stelco Inc. - Proposed term loan refinancing
Stelco Inc. - Proposed term loan refinancing.
About this update from Starr Peak Mining Ltd
[{"type":"text","content":"\n\n\n\nHAMILTON, ON, April 9 /CNW/ - Stelco Inc. (TSX: STE) announced today that\nit has entered into a commitment letter with GE Corporate Lending Canada\nrelating to a proposed refinancing of Stelco's existing revolving term loan.\nThe proposed refinancing would replace Stelco's existing revolving term loan\nwith a fully drawn facility in a US dollar amount equivalent to $275 million\nhaving a term of six years. The new facility would have a significantly lower\ninterest rate and fees compared to Stelco's existing revolving term loan. The\ncompletion of the refinancing is subject to a number of conditions which must\nbe satisfied no later than May 11, 2007. In relation to this refinancing,\nStelco has entered into an agreement with its lender for the existing\nrevolving term facility to defer payment of the annual fee otherwise payable\nthereunder on March 31, 2007 until May 11, 2007. Under the agreement, if the\nexisting revolving term credit facility is repaid by May 11, 2007, the\ndeferred fee will be waived.\n\n\n"This financing, in addition to our recently enhanced asset based loan\nfacility, provides a favourable long term debt structure for Stelco and is\nexpected to reduce our financing costs", said Rodney Mott, President and Chief\nExecutive Officer.\n\n\nAbout Stelco\n\n\nStelco is one of Canada's largest steel companies. It is focused on its\ntwo Ontario-based integrated steel businesses located in Hamilton and in\nNanticoke. These operations produce high quality value-added hot rolled, cold\nrolled, coated sheet and bar products. To learn more about Stelco and its\nbusinesses, please refer to our Web site at www.stelco.com.\n\n\nAbout GE Corporate Lending\n\n\nWith $14 billion in assets, GE Commercial Finance Corporate Lending is\none of North America's largest providers of asset-based, cash flow, structured\nfinance and other financial solutions for mid-size and large companies.\n\n\nCAUTION REGARDING FORWARD-LOOKING INFORMATION\n\n\nThis press release contains "forward-looking information" that is based\non Stelco's expectations, estimates and projections as of the date of this\npress release or as of the date which such information is identified to be\ngiven. This forward-looking information includes, among other things, factors\nrelating to the business, financial position, operations and p...