AK Steel Announces $125 Million Exchangeable Senior Notes Offering

AK Steel Holding Corporation

announced today that its subsidiary, AK Steel Corporation ("AK Steel"), has commenced a registered offering of $125 million aggregate principal amount of exchangeable senior notes due 2019 (the "notes"). AK Steel expects to grant the underwriters an option to purchase up to an additional $18.75 million aggregate principal amount of notes. The notes will be fully and unconditionally guaranteed on a senior unsecured basis by AK Holding, will pay interest semi-annually and will be exchangeable under certain circumstances and during certain periods, based on an exchange rate to be determined. Upon exchange of the notes, AK Steel will pay cash up to the aggregate principal amount of the notes to be exchanged and pay or deliver, as the case may be, cash, shares of AK Holding common stock or a combination of cash and shares of AK Holding common stock, at AK Steel's election, in respect of the remainder, if any, of its exchange obligation in excess of the aggregate principal amount of the notes being exchanged. The interest rate, exchange rate, exchange price and other terms of the notes will be determined at the time of pricing of the offering. AK Steel intends to use the net proceeds from the sale of the notes to repay borrowings under its asset-backed revolving credit facility and for general corporate purposes. The offering is being made pursuant to an effective shelf registration statement on file with the Securities and Exchange Commission (the "SEC"). Concurrently with this offering of notes, AK Holding has commenced a registered offering of 25,000,000 shares of its common stock. The joint book-running managers for the offering are Credit Suisse, J.P. Morgan, Citigroup, Wells Fargo Securities, Morgan Stanley and BofA Merrill Lynch.