Stelco Announces Improvements to its $600 Million Revolving Credit Facility



    HAMILTON, ON, March 23 /CNW/ - Stelco Inc. (TSX:STE) announced today that
it has completed certain amendments to its current $600 million asset based
revolving credit facility. These amendments include extending the term of the
facility to 2012, increasing the availability under the facility and providing
the opportunity to lower the overall financing costs of the Corporation in the
future. This facility is being provided by a banking syndicate led by CIT
Business Credit Canada Inc. and GE Capital Markets, Inc., and includes Bank of
America, N.A., Canada Branch, GMAC Commercial Finance Corporation - Canada,
LaSalle Business Credit, UBS AG Canada Branch and Wells Fargo Financial
Corporation Canada.
    Mr. Rodney Mott, President and CEO, stated that, "These amendments to our
loan arrangements are very positive for Stelco as they provide a longer term
debt structure and they will likely lead to lower financing costs in the
future. We appreciate the full cooperation of our lenders in working with the
company to complete these new arrangements."

    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.

    CAUTION REGARDING FORWARD-LOOKING INFORMATION

    This press release contains "forward-looking information" that is based
on Stelco's expectations, estimates and projections as of the date of this
press release or as of the date which such information is identified to be
given. This forward-looking information includes, among other things, factors
relating to the business, financial position, operations and prospects of
Stelco, including: Stelco's strategies and plans to reduce costs and the
anticipated outcome of such strategies and plans; anticipated productivity
levels and profitability; labour matters related to Stelco's predominantly
unionized workforce; pension matters; consolidation in the steel industry;
Stelco's energy and raw material costs and the availability of such materials;
the volatility of selling prices for steel; international trade matters,
including increases in steel imports into Canada; employee matters, including
staffing levels, the retention of the skills and knowledge of Stelco's
employees and the ability to attract and retain new employees; changes to
environmental laws and regulations concerned with, among other things,
emissions into the air, discharges to water or land, noise control and the
generation, handling, storage, transportation and disposal of toxic
substances; new technological developments and Stelco's ability to make
capital expenditures to maintain and enhance its technological ability;
development of new products; planned capital expenditures; and currency
fluctuations in the US dollar and its impact on steel pricing, and costs.
Often, but not always, forward-looking information can be identified by the
use of words and phrases such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or "believes", or variations of such
words and phrases or states that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved.
    Forward-looking information involves known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Stelco to be materially different from any
future results, performance or achievements expressed or implied by the
forward-looking information. Actual results, performance and achievements are
likely to differ, and may differ materially, from those expressed or implied
by the forward-looking information contained herein. Such forward-looking
information is based on a number of assumptions which may prove to be
incorrect, including, but not limited to: exchange rates, energy and other
anticipated and unanticipated costs; pension contributions and expenses; the
supply and demand for, deliveries of, and the level and volatility of prices
of, steel and raw materials; the continued availability of financing on
appropriate terms; market competition; the impact on Stelco of various
environmental regulations and initiatives; and Stelco's ongoing relations with
its employees and staffing levels. While Stelco anticipates that subsequent
events and developments may cause Stelco's views to change, Stelco
specifically disclaims any obligation to update this forward-looking
information. This forward-looking information should not be relied upon as
representing Stelco's views as of any date subsequent to the date of this
press release.

    %SEDAR: 00001549E




For further information:

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

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STELCO INC.

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