/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES/
HAMILTON, ON, Oct. 10, 2018 /CNW/ - Stelco Holdings Inc.
("Stelco", the "Company" or "we"), (TSX: STLC) announced today that
the underwriters to the Company's previously announced marketed
secondary offering (the "Offering") have exercised in part their
over-allotment option ("Over-Allotment Option") to purchase an
additional 730,000 common shares of the Company ("Common Shares")
from LG Bedrock Holdings LP ("Lindsay Goldberg")
and Foundation Industries Group LLC ("DC LLC" and together
with Lindsay Goldberg, the "Selling
Shareholders") at a price of C$22.65
per Common Share for aggregate gross proceeds of C$16,534,500 to the Selling Shareholders
(C$16,018,442.40 to Lindsay Goldberg for 707,216 Common Shares and
C$516,057.60 to DC LLC for 22,784
Common Shares).
The Offering was completed by way of a short form prospectus of
the Company dated September 11, 2018
(the "Short Form Prospectus"). The Short Form Prospectus has been
filed with Canadian securities regulators and is available under
the Company's profile at www.sedar.com.
The Offering was led by Goldman Sachs Canada Inc. and BMO
Capital Markets, as lead joint bookrunners, together with Credit
Suisse Securities (Canada), Inc.,
J.P. Morgan Securities Canada Inc., and Morgan Stanley Canada
Limited, as joint bookrunners, and National Bank Financial Inc. and
Oppenheimer & Co. Inc., as co-managers.
The Common Shares sold pursuant to the exercise of the
Over-Allotment Option were distributed to the Selling Shareholders
from Bedrock (as defined below). Prior to the exercise of the
Over-Allotment Option, Bedrock Industries B.V. ("Bedrock") held
57,283,887 Common Shares, representing 64.5% of the issued and
outstanding Common Shares. Following the exercise of the
Over-Allotment Option, Bedrock holds 56,553,887 Common Shares,
representing approximately 63.7% of the issued and outstanding
Common Shares. The Company will not receive any proceeds from the
exercise of the Over-Allotment Option. Alan
Kestenbaum, the Executive Chairman and CEO of the Company,
was not a Selling Shareholder and has not received any proceeds
from the exercise of the Over-Allotment Option.
The Common Shares have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold
in the United States absent
registration or an applicable exemption from the registration
requirements. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any
sale of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful.
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.
About the Selling Shareholders
Lindsay Goldberg is organized
under the laws of Delaware and the
address of its registered office is 630 5th Avenue,
Floor 30, New York, New York
10111. DC LLC is organized under the laws of New Jersey and the address of its registered
office is 296 Milburn Avenue, #201, Milburn, New Jersey 07041.
About Bedrock
Bedrock is organized under the laws of the Netherlands and its registered office is
Strawinskylaan 1033, Toren C-10, 1077 XX Amsterdam, the Netherlands. It is an affiliate
of Bedrock Industries L.P., a privately funded company focused on
owning and operating metals, mining and natural resources assets
and companies. The Common Shares were transferred to the Selling
Shareholders in order to give effect to the Offering. Subject to
the 60-day lock-up that it has agreed to with the underwriters
which permits Bedrock to make distributions, transfers or
assignments to its limited partners, Bedrock may determine to sell
all or some of the Common Shares it holds (including pursuant to
its registration rights under the investor rights agreement between
the Company and Bedrock) or make distributions in kind, depending
upon price, market conditions, availability of funds, evaluation of
alternative investments, the interests of indirect investors in
Bedrock and other factors it considers relevant from time to
time.
SOURCE Stelco