Stelco announces details of proposed redemption of Stelco's floating rate notes



    HAMILTON, ON, Sept. 19 /CNW/ - Stelco Inc. ("Stelco" or the
"Corporation") (TSX:STE) today announced that pursuant to the terms of the
arrangement agreement (the "Arrangement Agreement") with United States Steel
Corporation ("U.S. Steel"), U. S. Steel has specified that Stelco's floating
rate notes due 2016 (the "Notes") are to be redeemed on the effective date
(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.
The Arrangement Agreement will be submitted for approval at the special
meeting of shareholders of the Corporation to be held on October 26, 2007. The
Arrangement is subject to approval by the Ontario Superior Court of Justice
(the "Court"). If approved by shareholders and the Court, 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 payable under the terms of the indenture (the
"Indenture") governing the Notes 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.com.

    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 Circular 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. The Corporation 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.

    %SEDAR: 00001549E




For further information:

For further information: J. Kenneth Rutherford, Chief Financial Officer,
Stelco Inc., (905) 528-2511, Extension 2022

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STELCO INC.

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