CLAYMONT, Del., Feb. 6, 2007 (PRIME NEWSWIRE) -- Claymont Steel Holdings, Inc. (Nasdaq:PLTE) announced today that its wholly owned subsidiary, Claymont Steel, Inc., has priced its private offering of $105 million aggregate principal amount of senior notes due 2015 (the "Notes") at an annual interest rate of 8.875%. The Notes offering is part of a previously announced refinancing of the Company's existing debt.
The Company intends to use the net proceeds of both the Notes offering and its new $80 million senior secured revolving credit facility (the "Credit Facility") to redeem Claymont Steel's outstanding Senior Secured Floating Rate Notes due 2010, which are redeemable at 103% of the outstanding principal amount thereof, plus payment of accrued and unpaid interest. The aggregate redemption price of the notes on February 28, 2007 would be approximately $186.2 million. Upon completion of the refinancing and the redemption of the existing senior notes, the Company expects its annual interest expense to be reduced by approximately $8 million.
The Notes are being offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. None of the Notes have been registered under the Securities Act or any state securities laws and, unless so registered, may not be offered or sold in the United States or to U.S. persons except pursuant to an exemption from, or in a transaction not subject to the registration requirements of the Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
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.