Stelco Files Preliminary Prospectus for Initial Public Offering
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
- 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.
Caution Regarding Forward Looking Information
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "may", "will", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. Forward-looking information may relate anticipated events or plans. Some of the specific forward-looking statements contained herein include statements with respect to the following: the intention of Stelco Holdings Inc. to complete the Offering and the use of the proceeds of the Offering.
Forward-looking statements necessarily involve known and unknown risks and uncertainties, which may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, assumptions may not be correct and objectives, strategic goals and priorities may not be achieved. A variety of factors, many of which are beyond Stelco's control, affect the operations, performance and results of Stelco and its business, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to, the risks discussed in the preliminary prospectus filed with Canadian securities regulatory authorities on www.sedar.com. Readers are cautioned to consider these and other factors, uncertainties and potential events carefully as there can be no assurance actual results will be consistent with such forward-looking statements.
Information contained in forward-looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including management's perceptions of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances, including the following: all regulatory approvals in connection with the Offering are received on a timely basis; conditions within the steel industry will be consistent with the current climate; and the risks identified or referenced above, collectively, will not have a material impact on Stelco. While management considers these assumptions to be reasonable based on currently available information, they may prove to be incorrect.
Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward looking information for anything other than its intended purpose. Stelco undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Stelco
Joel Shaffer, Longview Communications, 416.649.8006, [email protected]
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