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SOURCE Magnetation LLC
GRAND RAPIDS, Minn., Feb. 26, 2013 /PRNewswire/ -- Magnetation LLC (Magnetation) announced today that it has successfully closed $110,000,000 of Senior Secured Credit Facilities (Credit Facilities). The Credit Facilities are comprised of a $25,000,000 Senior Secured Revolving Credit Facility, $50,000,000 Senior Secured Term Loan A and $35,000,000 Senior Secured Delayed Draw Term Loan. The proceeds from the Credit Facilities will be used for growth-related capital expenditures for Phase 2 of Magnetation's development, which includes the previously-announced construction of a new plant in Reynolds, Indiana that will produce high-quality iron ore pellets, a critical raw material in the steelmaking process.
"This new capital allows us to continue to execute on our Phase 2 growth plans in an efficient manner, as well as demonstrate our strong relationships with lenders," said Larry Lehtinen, CEO of Magnetation.
JPMorgan Chase, N.A. is the administrative agent for the Credit Facilities and J.P. Morgan Securities LLC acted as the sole lead arranger and bookrunner of the syndication. Associated Bank, N.A. and BMO Harris Bank N.A. are co syndication agents with RBS Citizens, N.A. as a participant.
Magnetation LLC is a joint venture between Magnetation, Inc. (50.1% owner) and AK Steel Corporation (49.9% owner). Magnetation LLC reclaims high-quality iron ore concentrate from previously abandoned iron ore waste stockpiles and tailings basins. Currently, Magnetation LLC owns and operates two reclamation plants located in Keewatin, MN and Taconite, MN. Magnetation LLC expects to construct a 3 million metric tonne per year iron ore pellet plant in Reynolds, Indiana and two additional concentrate reclamation plants located northwest of Coleraine, MN and southeast of Calumet, MN. Additional information about the company is available at www.magnetation.com.
AK Steel produces flat-rolled carbon, stainless and electrical steels, primarily for automotive, infrastructure and manufacturing, construction and electrical power generation and distribution markets. The company employs about 6,100 men and women in Middletown, Mansfield, Coshocton and Zanesville, Ohio; Butler, Pennsylvania; Ashland, Kentucky; Rockport, Indiana; and its corporate headquarters in West Chester, Ohio. AK Steel also owns 49.9% of Magnetation LLC, a joint venture headquartered in Grand Rapids, Minnesota, which produces iron ore concentrate from previously mined ore reserves. Additional information about AK Steel is available on the company's web site at www.aksteel.com.
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