Claymont Steel Holdings, Inc. Announces Closing of Refinancing Transactions and Redemption of Senior Secured Floating Rate Notes


CLAYMONT, Del., Feb. 15, 2007 (PRIME NEWSWIRE) -- Claymont Steel Holdings, Inc. (Nasdaq:PLTE) announced today that its wholly-owned subsidiary, Claymont Steel, Inc., has completed its previously announced refinancing transactions. The net proceeds of the new financing program have been used to refinance the Company's existing indebtedness and pay related fees and expenses.

As part of the financing, the Company entered into an $80 million senior secured credit facility (the "Credit Facility") consisting of a $20 million term loan and a $60 million revolving credit facility. Borrowings under the revolving credit facility will bear interest at floating rates equal to either the prime rate of interest in effect from time to time (plus .25% in certain circumstances) or LIBOR plus 1.00% to 1.75% based on the amount of availability. Borrowings under the term loan will bear interest at floating rates equal to either the prime rate of interest in effect from time to time or LIBOR plus 2.50%.

The Company also completed the sale of $105 million aggregate principal amount of its 8.875% Senior Notes due 2015 (the "Notes") to qualified institutional buyers pursuant to Rule 144A and to non-U.S. persons outside the United States in reliance on Regulation S under the Securities Act of 1933, as amended. The Notes are unsecured senior obligations of the Company guaranteed by the Company's domestic subsidiaries, and pay interest at 8.875% per annum on each February 15 and August 15 beginning August 15, 2007.

The Notes have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration under, or any applicable exemption from, the registration requirements of the Securities Act and applicable state securities laws.

Redemption of Senior Secured Floating Rate Notes

The Company also announced today that it has notified the Trustee for its outstanding Senior Secured Floating Rate Notes due 2010 that it will redeem in full all $170.1 million of the outstanding notes on March 19, 2007. The redemption will be effected in accordance with the terms of the notes and the indenture governing the notes at a redemption price of 103% of the principal amount of the notes outstanding plus accrued and unpaid interest through the date of redemption. The total redemption price of approximately $187.3 million will be funded through the net proceeds of the Note offering, borrowings under the Credit Facility and existing cash of $30 million.

About Claymont Steel

Claymont Steel manufactures and sells custom discrete steel plate in North America. Claymont Steel's headquarters and manufacturing facilities are located in Claymont, Delaware. More information is available at http://www.claymontsteel.com.

Forward-Looking Statements

This press release may contain forward-looking statements that are made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements of future goals and similar statements other than historical facts constitute forward-looking statements. These forward-looking statements involve a number of risks and uncertainties, which are described in Claymont Steel's filings with the Securities and Exchange Commission. The actual results may differ materially from any forward-looking statements due to such risks and uncertainties. Claymont Steel undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.



            

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