Stelco Announces Proposed Private Offering of Senior Secured Notes Due 2024 by Stelco Inc.

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

HAMILTON, ON, Sept. 16, 2019 /CNW/ - Stelco Holdings Inc. ("Stelco " or the "Company") (TSX: STLC) today announced that its wholly-owned subsidiary, Stelco Inc. ("Stelco Inc.") intends, subject to market and other conditions, to offer approximately US$300 million in aggregate principal amount of senior secured notes due 2024 (the "Notes").

The Notes will be offered by a syndicate of initial purchasers by way of a private placement under applicable securities laws. Stelco Inc. intends to use the net proceeds from the offering for capital expenditures and general corporate purposes, which may include potential acquisitions, joint ventures and strategic alliances or distributions to the Company.

The Notes will not be qualified for distribution to the public under the securities laws of any province or territory of Canada and may not be offered or sold in Canada, directly or indirectly, other than pursuant to applicable prospectus exemptions. The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States, or to or for the account or benefit of any U.S. person, absent registration or an applicable exemption from the registration requirements of the Securities Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Notes in any jurisdiction, or an offer to purchase or the solicitation of an offer to sell.  Any offer of the Notes will be made only by means of a confidential offering memorandum.

About Stelco

Stelco is a low cost, integrated and independent steelmaker with one of the newest and most technologically advanced integrated steelmaking facilities in North America. Stelco produces flat-rolled value-added steels, including premium-quality coated, cold-rolled and hot-rolled steel products. With first-rate gauge, crown, and shape control, as well as reliable uniformity of mechanical properties, our steel products are supplied to customers in the construction, automotive and energy industries across Canada and the United States as well as to a variety of steel services centres, which are regional distributers of steel products.

This news release contains forward-looking statements, as defined by applicable securities legislation, including statements regarding the proposed offering of Notes and the anticipated use of proceeds therefrom. Often, but not always, forward-looking statements can be identified by the use of words such as "set up," "on track," "expect," "estimate," "forecast," "target," "outlook," "schedule," "represent," "continue," "intend," "should," "would," "could," "will," "can," "might," "may," and other expressions which are predictions of or indicate future events, trends or prospects and which do not relate to historical matters identify forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

Although the Company believes it has a reasonable basis for making these forward-looking statements, readers are cautioned not to place undue reliance on such forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, which contribute to the possibility that the predictions, forecasts and other forward-looking statements will not occur. Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include changes in general economic and/or market conditions, material changes in the business or affairs of the Company and conditions to closing the offering, many of which are outside of the Company's control, which could cause actual results to differ materially from the results discussed in the forward-looking statements.

Any forward-looking statement speaks only as of the date on which it is made, and, except as required by applicable law, the Company does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by, or on behalf of, the Company, whether as a result of new information, future events or otherwise, or to publicly update or revise the above list of factors affecting this information. New factors emerge from time to time, and it is not possible for the Company to predict all such factors. When considering the forward-looking statements included in this news release, please keep in mind the risk factors and other cautionary statements described in the Company's management's discussion and analysis for the three months and year ended December 31, 2018, the Company's management's discussion and analysis for the three months ended June 30, 2019 and the Company's annual information form for the year ended December 31, 2018, each available under the Company's profile on SEDAR at www.sedar.com. The forward-looking statements contained in this news release are made as of the date hereof.

SOURCE Stelco

For further information: For investor enquiries: Don Newman, Chief Financial Officer, Stelco, 905-577-4432, [e-mail]; For media enquiries: Trevor Harris, Vice-President, Corporate Affairs, Stelco, 905-577-4447, [e-mail]

Related Links

https://www.stelco.com/