AK Steel Prices Concurrent Offerings Of Common Stock, Senior Unsecured Notes

(RTTNews) - AK Steel Holding Corp. (AKS) Thursday said it will offer 35 million shares of its common stock at a public offering price of $9.00 per share. The underwriters will have a 30-day option to buy up to an additional 5.25 million shares.

Concurrently, the company also priced a public offering of $430 million of 7.625 percent senior notes due 2021, which were offered to the public at a price of 99.325 percent of par.

AK Steel and its parent company AK Holding plan to use the proceeds from the sale of notes and from the sale of the common stock, to pay the purchase price for AK Steel's acquisition of Severstal Dearborn, LLC. Remaining proceeds from the sale of common stock will be used for repaying borrowings under the company's asset-backed revolving credit facility and for general corporate purposes.

Both offerings are expected to close on September 16, 2014.