Stelco Holdings Inc. and Bedrock Industries Cooperatief U.A. Announce Secondary Bought Deal Equity Offering

Share:

HAMILTON, Ontario, March 03, 2021 (GLOBE NEWSWIRE) -- Stelco Holdings Inc. (“Stelco” or the “Company”), (TSX: STLC) and Bedrock Industries Cooperatief U.A. (the “Selling Shareholder”) have announced today that BMO Capital Markets has agreed to buy from the Selling Shareholder on a bought deal basis 7,000,000 common shares of the Company (the “Common Shares”), at a price of $26.25 per Common Share for gross proceeds of C$183,750,000 to the Selling Shareholder (the “Offering”). The Selling Shareholder has granted the Underwriters an option, exercisable at the same price for a period of 30 days following the closing of the Offering, to purchase up to an additional 15% of the Offering to cover over-allotments, if any and for consequent market stabilization purposes. The offering is expected to close on or about March 10, 2021 and is subject to certain conditions, including all necessary regulatory approvals.

Bedrock Industries Cooperatief U.A. currently holds, 41,172,315 Common Shares of the Company representing approximately 46.4% of the issued and outstanding Shares. Following the closing of the Offering (assuming no exercise of the over-allotment option), Bedrock Industries Cooperatief U.A. will hold, 34,172,315 Common Shares, representing approximately 38.5% of the issued and outstanding Shares.

The net proceeds of the Offering will be paid directly to Bedrock Industries Cooperatief U.A. The Company will not receive any proceeds from the Offering.

The Common Shares will be offered in each of the provinces and territories of Canada pursuant to the Company’s base shelf prospectus dated February 11, 2021 and may also be offered by way of private placement in the United States. The terms of the Offering will be described in a prospectus supplement to be filed with Canadian securities regulators. The lead Underwriters are waiving a lock-up restriction with respect to the Common Shares held by the Selling Shareholder to be sold in the Offering.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.