HAMILTON, ON, Sept. 27 /CNW/ - Stelco Inc. (TSX: STE) today announced that, for the period from September 30, 2007 to March 30, 2008 inclusive, the rate of interest per annum for Stelco's floating rate notes due 2016 (the "Notes") will be 10.64%. The foregoing interest rate, which has been established in accordance with the terms of the indenture governing the Notes (the "Indenture"), is subject to adjustment in certain circumstances as provided for in the Indenture.
As announced by Stelco on September 19, 2007, United States Steel Corporation ("U.S. Steel") has specified that the Notes are to be redeemed on the effective date of the proposed arrangement under Section 192 of the Canada Business Corporations Act ("Arrangement") involving Stelco, U.S. Steel and 1344973 Alberta ULC, an indirect wholly owned subsidiary of U.S. Steel. If approved by shareholders and the Ontario Superior Court of Justice, the Arrangement is expected to be completed on or about October 31, 2007, subject to the satisfaction of the conditions to closing set out in the agreement between the parties. U. S. Steel has specified to Stelco that if the Arrangement closes, the redemption amount for each U.S.$1,000 principal amount of Notes will be the aggregate of U.S.$1,000 plus all accrued and unpaid interest thereon to but excluding the effective date of the Arrangement payable under the terms of the Indenture plus U.S.$100, representing the premium payable under the terms of the Indenture, plus 30 days of additional interest in lieu of notice under the Indenture.
About Stelco
Stelco is one of Canada's largest steel companies. It is focused on its two Ontario-based integrated steel businesses located in Hamilton and in Nanticoke. These operations produce high quality value-added hot rolled, cold rolled, coated sheet and bar products. To learn more about Stelco and its businesses, please refer to our Web site at www.stelco.ca.
Cautionary Statement with Respect to Forward-Looking Statements
Certain statements included herein constitute "forward-looking statements". All statements, other than statements of historical fact, included in this release that address future activities, events, developments or financial performance, are forward-looking statements. These forward-looking statements can be identified by the use of forward-looking words such as "may", "should", "will", "could", "expect", "intend", "plan", "estimate", "anticipate", "believe", "future" or "continue" or the negative thereof or similar variations. Other examples of such statements include the expected redemption of the floating rate notes and the redemption amount in respect of those notes. The forward-looking statements are based on certain assumptions and analyses made by Stelco and its management in light of their experiences and their perception of historical trends, current conditions and expected future developments, as well as other factors they believe are appropriate in the circumstances. Stelco believes the following factors could cause actual results to differ materially from those discussed in the forward-looking statements: failure to satisfy the conditions to complete the Arrangement, including failure to receive required shareholder, Court, regulatory or third party approvals; the occurrence of any event, change or other circumstance that could give rise to the termination of the Arrangement agreement; and the failure of the Arrangement to be completed for any other reason. Although Stelco has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The factors identified above are not intended to represent a complete list of the factors that could affect Stelco. Furthermore, the forward-looking statements contained in this release are made as of the date of this release. In light of these risks, which are inherent in forward-looking statements, readers are cautioned not to place undue reliance on those forward-looking statements. Stelco undertakes no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise.
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