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GENEVA STEEL ANNOUNCES COMPLETION OF FINANCING PLAN; CONTINUOUS CASTER CONSTRUCTION PROJECT RESUMES FULL ACTIVITY

 VINEYARD, Utah, March 17 /PRNewswire/ -- Geneva Steel (NYSE, PSE: GNV) announced today the completion of its plan of financing which included: (i) the public offering of $135 million principal amount of 11-1/8 percent senior notes due 2001; (ii) the private placement of $40 million of 14 percent cumulative redeemable exchangeable series A preferred stock and related warrants to purchase an aggregate of 1,132,000 shares of class A common stock of the company; (iii) the repurchase of $70 million principal amount of the company's existing term debt; and (iv) the receipt of necessary consents from the holders of the company's existing term debt and from the lenders under the company's revolving credit facility.
 Apart from the repurchase of $70 million principal amount of existing term debt, the net proceeds from the plan of financing will be used primarily to fund the completion of the company's continuous casting facility.
 "With the financing in place, we can now resume full construction activity on the continuous caster project," said Joseph A. Cannon, chairman and chief executive officer. "The continuous caster is a significant portion of our extensive modernization program that is designed to improve environmental quality, reduce operating costs, enhance throughput, broaden the company's product line, and improve product quality."
 The company estimates that construction of the continuous caster will be completed in approximately 12 - 15 months.
 Since announcing the modernization program in 1990, the company has (i) installed two bottom-blown basic oxygen process "Q-BOP" furnaces which began operating in October 1991, (ii) completed a direct rolling and large coil project, including installation of a coilbox and an in-line steel slab conditioning facility, (iii) substantially completed the engineering of, and undertaken equipment procurement and site preparation for, a continuous casting facility, and (iv) completed various environmental and other projects.
 "Completion of the continuous caster will allow Geneva to produce the widest continuously cast slabs in the world," said Robert J. Grow, president and chief operating officer. "With the rolling of these slabs through the world's widest six-stand continuous rolling mill, Geneva expects to produce high-quality plate products at a significantly reduced cost, and to position itself for additional market penetration."
 Geneva Steel is the only integrated steel mill operating west of the Mississippi River. The company manufactures hot-rolled steel sheet, plate and pipe for sale primarily in the western and central United States.
 -0- 3/17/93
 /CONTACT: Mitch Haws of Geneva Steel, 801-227-9174/
 (GNV)


CO: Geneva Steel ST: Utah IN: MNG SU: FNC

GK-OS -- NY018 -- 6921 03/17/93 09:38 EST
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Publication:PR Newswire
Date:Mar 17, 1993
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