New Issue: AK Steel prices $30 million tap of 8¾% notes due 2018 at 106.5 to yield 7.017%

By Paul A. Harris

Portland, Ore., June 19 - AK Steel Corp. priced a $30 million add-on to its 8¾% senior secured notes due Dec. 1, 2018 (B1/BB-/) at 106.5 to yield 7.017% on Wednesday, according to an informed source.

There was no official price talk.

BofA Merrill Lynch ran the books for the quick-to-market add-on.

The West Chester, Ohio-based flat rolled steel producer plans to use the proceeds for general corporate purposes.

Issuer:	AK Steel Corp.
Amount:	$30 million
Proceeds:	$32 million
Maturity:	Dec. 1, 2018
Security description:	Add-on to 8¾% senior secured notes due Dec. 1, 2018
Bookrunner:	BofA Merrill Lynch
Coupon:	8¾%
Price:	106.5
Yield to worst:	7.017%
Call features:	Make-whole call at Treasuries plus 50 bps until Dec. 1, 2015, then callable at 104.375, 102.188, par on and after Dec. 1, 2017
Equity clawback:	35% at 108.75 until Dec. 1, 2015
Change-of-control put:	101%
Trade date:	June 19
Settlement date:	June 24 with accrued interest
Ratings:	Moody's: B1
	Standard & Poor's: BB-
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	None
Marketing:	Quick to market

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