Algoma Steel sets terms for first mortgage note issue.SAULT STE. MARIE Sault Sainte Marie — pronounced "Soo Saint Marie" (IPA /su seɪnt məˈɹi/) — is the name of two cities on the Saint Marys River, which forms part of the boundary between the United States and Canada. , Ontario--(BUSINESS WIRE)--April 23, 1996-- Algoma Steel ''See also Algoma (Disambiguation) Algoma Steel Corporation (TSX: AGA) was founded in 1902 by Francis Clergue, an American entrepreneur who had settled in Sault Ste. Marie, Ontario. Inc. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :/NASDAQ:ALG ALG antilymphocyte globulin. ALG antilymphocyte globulin. ALG Antilymphocyte globulin, see there ;ALGSF) announced Tuesday that it has priced the offering of US$34 million (principal amount) of 12-3/8 percent First Mortgage Notes due July 2005. The Notes were priced at 97.00 with an effective yield to maturity of approximately 12.93 percent. BT Securities Corp. acted as sole manager of the offering. The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of the public offering of approximately US$32 million will be placed in an escrow account as further pre-funding of Algoma's capital expenditure program, the cornerstone of which is the Direct Strip Production Complex. The offering, which is being made only in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , is expected to close on or about April 26, 1996. An additional US$10 million of Notes will be available for issuance in July 1996 to holders of contingent value rights that were issued in connection with Algoma's 1995 refinancing. The company expects to release its results for the quarter ending March 31, 1996 on May 6, 1996. In commenting on anticipated first quarter 1996 results, Glen Manchester, Algoma's Director of Finance and Controller stated, "The first quarter of 1996 was characterized by strong shipment levels, lower average price realizations and continued high operating costs, all as compared to the fourth quarter of 1995. "Based on currently available information, we anticipate that income from operations for the first quarter will decline by approximately $5-7 million from the level reported in the fourth quarter of 1995. Early in the first quarter of 1996, Algoma announced a 3 percent increase on sheet products and the benefit of this increase began to be realized in late March 1996. "First quarter operating costs remained high due primarily to higher production costs from the fourth quarter of 1995 carried in inventory and constrained production levels and costs incurred in the first quarter of 1996 due to winter weather-related factors. Production costs improved over the course of the first quarter." Algoma Steel, based in Sault Ste. Marie, Ontario For the city of Sault Ste. Marie in Michigan, or the Canadian federal and provincial electoral districts of the same name, see: Sault Ste. Marie. Sault Ste. Marie (nicknamed "the Sault" or "the Soo") is a city on the St. Marys River in Ontario, Canada. , is Canada's third largest integrated steel producer. Revenues are derived primarily from the manufacture and sale of rolled steel products, including hot and cold rolled sheet, plate, seamless tubular products and structural products. Construction of the $400 million Direct Strip Production Complex (DSPC DSPC distearoylphosphatidylcholine DSPC Direct Shell Production Casting DSPC Direct Strip Production Complex DSPC Director Strategic Planning Coordination DSPC Digital Studio Picture Control ) is currently on schedule for completion in the third quarter of 1997. The DSPC, fed by the Company's existing high quality, low cost liquid steel making facilities, will be a state-of-the-art facility for the production of high quality strip through a thin slab caster linked directly to a hot strip mill. CONTACT: Algoma Steel Inc. Jim Garner, 416/864-1524 |
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