/NOT FOR DISTRIBUTION TO U.S.
NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
HAMILTON, ON, Nov. 4, 2019 /CNW/ - Stelco Holdings Inc.
("Stelco" or the "Company") (TSX: STLC) today announced that its
wholly-owned subsidiary, Stelco Inc. ("Stelco Inc.") has amended
its asset-based credit facility ("ABL Credit Facility") to include
a $100 million secured term loan due
August 2023 (the "Loan"). The
interest rate on Loan is, at the Company's election, either (a) the
Canadian prime rate plus 1.25% - 1.75% or (b) CDOR/ LIBOR plus a
margin of 2.25% - 2.75%, in each case, depending on the amount that
had been drawn under the ABL Credit Facility and payable monthly.
The Loan is being made available through the existing ABL Credit
Facility with the current syndicate of lenders. Stelco Inc. intends
to use the net proceeds from the Loan for capital expenditures and
general corporate purposes.
David Cheney, Stelco's Chief
Executive Officer commented, "Stelco's strong balance sheet affords
many alternatives for financing that are more flexible and at lower
cost than what is available from other capital sources, including
the high yield market. By securing low-cost incremental
liquidity, which is pre-payable at any time without penalty, Stelco
remains very well positioned to execute our business
plan."
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 Loan 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 and material changes in the
business or affairs of the Company, 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