HAMILTON, ON, Dec. 11, 2017 /CNW/ - Stelco Holdings Inc.
(the "Company") (TSX: STLC) announced today that Stelco Inc.
("Stelco") has completed inventory monetization arrangement
previously disclosed in its supplemented prep prospectus dated
November 2, 2017. Under the
terms of the arrangement, Stelco has agreed to transfer certain of
its raw material inventory, including coal and iron ore to a third
party in consideration for net proceeds of approximately U.S
$100 million. Under the terms of the
arrangement, Stelco is required to post a cash collateral margin to
its counterparty and has agreed to purchase the raw materials
inventory from the counterparty, at an agreed upon pricing formula,
as needed for its steel manufacturing processes and upon expiry of
the term of the arrangement.
It is anticipated that the proceeds of the inventory
monetization arrangement will be used to repay the outstanding
advances drawn under Stelco's asset-based credit facility and for
general working capital purposes.
About Stelco
Stelco is a corporation under the laws of Canada and its registered address is 386
Wilcox Street, Hamilton, Ontario,
L8L 8K5. Stelco is one of Canada's
leading integrated steel companies. It conducts its operations out
of two facilities located in Hamilton and in Nanticoke Ontario. These operations produce
high quality value-added hot rolled, cold rolled, coated sheet
steel products used in the construction, automotive and energy
industries across Canada and
the United States.
Forward Looking Statements
This press release contains certain forward-looking
statements that are provided for the purpose of presenting
information about management's current expectations and plans.
Readers are cautioned that such statements may not be appropriate
for other purposes. Forward-looking statements include statements
that are predictive in nature, depend upon or refer to future
events or conditions, or include words such as "expects,"
"anticipates," "plans," "predicts," "believes," "estimates,"
"intends," "targets," "projects," "forecasts" or negative versions
thereof and other similar expressions or future or conditional
verbs such as "may," "will," "should," "would" and "could." In
particular, forward-looking statements contained herein include the
anticipated use of proceeds of the inventory monetization
arrangement.
These statements are based upon certain material factors or
assumptions that were applied in developing the forward-looking
statements. Although these forward-looking statements are based
upon management's current reasonable expectations and assumptions,
they are subject to numerous risks and uncertainties. Some of the
factors that could cause results or events to differ from current
expectations include, but are not limited to, actual results could
differ materially from those expressed in, or implied by, these
forward-looking statements and, accordingly, no assurances can be
given that any of the events anticipated by the forward-looking
statements will transpire or occur.
The forward-looking statements contained in this release are
based on assumptions that were considered reasonable on the date
hereof. Other than as specifically required by law, the Company
undertakes no obligation to update any forward-looking statements
to reflect events or circumstances after such date or to reflect
the occurrence of unanticipated events, whether as a result of new
information, future events or results, or otherwise.
SOURCE Stelco