Bedrock Industries-backed Stelco files to go public in Canada

Canadian steel company Stelco Inc has filed a preliminary prospectus with domestic securities regulatory authorities for an initial public offering of its common shares. The IPO, which has not yet been priced, contemplates a treasury offering. The proceeds will be used for investments in new products and Stelco’s production capabilities, pre-payments of certain future benefit obligations, and other priorities. Goldman Sachs & Co LLC and BMO Capital Markets are acting as joint bookrunners. Hamilton, Ontario-based Stelco earlier this year emerged from creditor protection and closed a restructuring deal with U.S. private equity firm Bedrock Industries Group.

PRESS RELEASE

Stelco Files Preliminary Prospectus for Initial Public Offering

Net proceeds of the Offering to be used to make capital investments, pre-pay certain future obligations and for general corporate purposes

Offering to be from treasury

HAMILTON, ON, Sept. 27, 2017 /CNW/ – Stelco Holdings Inc., on behalf of itself and Stelco Inc., announced today that Stelco Holdings Inc. (collectively with Stelco Inc., “Stelco”) has filed a preliminary prospectus with the securities regulatory authorities in each of the provinces and territories of Canada and obtained a receipt in respect of its proposed initial public offering (the “Offering”) of common shares (“Common Shares”). The Offering contemplates a treasury offering of Common Shares by Stelco Holdings Inc. The number of Common Shares to be sold and the price per Common Share have not yet been determined. Prior to closing of the Offering, Stelco Holdings Inc. would become the parent company of Stelco Inc.

Stelco intends to use the net proceeds of the Offering to fund:

Capital investments in Stelco Inc., including selective capital investments to develop new products and enhance Stelco’s production capabilities;
Early payment to certain pension and other post-employment benefits trusts; and
General corporate purposes, which could include additional capital investments.
Goldman Sachs & Co. LLC and BMO Capital Markets are acting as joint bookrunners for the Offering.

The preliminary prospectus has not yet become final for the purpose of a distribution of securities to the public. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale or acceptance of an offer to buy these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Common Shares have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state of the United States. The preliminary prospectus contains important information relating to the Common Shares and is still subject to completion or amendment. Copies of the preliminary prospectus will be available on SEDAR at www.sedar.com.

About the Company

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.

For further information: Joel Shaffer, Longview Communications, 416.649.8006, jshaffer@longviewcomms.ca

Photo courtesy of Stelco Inc