AK Steel to redeem 2004 notes

New York, April 16 - AK Steel Corp. (B1/B+) announced plans to redeem the remaining $62.5 million principal amount of its senior secured notes scheduled to come due in December.

AK Steel, a Middletown, Ohio-based steel producer, plans to redeem the notes on May 21.

The notes were part of an original $250 million issued in December 1996 that provided a portion of the financing for the construction of the company's Rockport Works in southwestern Indiana, which began operations in 1998.

According to data from Moody's Investors Service, the company issued $162.5 million of zero-coupon notes in three tranches and $87.5 million of 8.98% notes in two tranches. AK Steel did not provide a breakdown as to how much of each series of notes currently remains outstanding.

AK Steel said it was redeeming the notes as part of its plan to reduce debt using a portion of the proceeds of its recent sales of Greens Port Industrial Park on the Houston Ship Channel and Douglas Dynamics LLP, a maker of snow and ice control equipment. Total proceeds from those transactions was estimated at $340 million.

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