Back to News ReleasesWCI STEEL, INC. ANNOUNCES INCREASE IN CREDIT FACILITY TO ENHANCE FINANCIAL FLEXIBILITY
WARREN, OHIO, April 28, 2008 - WCI Steel, Inc. announced today that it has increased the size of its current credit facility by $25.0 million to a total of $175.0 million. The company currently has $127.5 million borrowed under the credit facility and over $20 million in cash.
“The additional borrowing capacity provides WCI Steel with increased financial flexibility and demonstrates the commitment of our lender-owner group,” said Leonard M. Anthony, President and Chief Executive Officer of WCI Steel, Inc. “Our operations are now at full capacity allowing us to participate in today’s strong market for steel. The new walking beam furnace at the hot strip mill is helping WCI Steel improve product quality, lower its costs and reduce energy consumption.”
Mr. Anthony concluded: “WCI Steel has overcome difficult operational challenges in the past year because of the support of our customers, employees and suppliers. We have invested over $100 million in our operations since May 1, 2006 to further improve quality, throughput and environmental compliance. We are all working to make WCI Steel successful for the long term as a niche producer in the competitive global steel marketplace.”
About WCI Steel, Inc.
WCI Steel’s strength is built on “Custom Steel. Custom Service. Creative Solutions.” As a niche-oriented integrated producer of value-added, custom steel products, WCI Steel emphasizes customer and technical service. WCI Steel currently produces 185 grades of flat-rolled custom and commodity steel products at its Warren, Ohio facility. WCI Steel focuses on a wide range of custom flat-rolled steel products, including high carbon, alloy, ultra high strength, and heavy-gauge galvanized steel and on developing closer, more responsive relationships with customers. Major customers are steel converters, service centers, construction product companies, and pipe and tube manufacturers.
Forward-Looking Statements
Information contained in this release, other than historical information, should be considered “forward-looking statements” within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
WCI Steel cautions that there are various important factors that could cause actual events to differ materially from those indicated in the forward-looking statements; accordingly, there can be no assurance that such indicated events will occur. Among such factors are: general economic and business conditions; demand for WCI Steel’s products; changes in industry capacity and levels of imports of steel or steel products; industry trends, including product pricing, competition; currency fluctuations; the loss of any significant customer; pricing and availability of raw materials and energy; power outages or curtailments; availability of qualified personnel; ability to train the existing workforce; plant operating performance; major equipment failures; the timing, cost and completion of capital projects; changes in, or the failure or inability to comply with, government regulation, including, without limitation, environmental regulations; the outcome of legal matters and other risk factors. Except as required by law, WCI Steel does not assume any responsibility to update any forward-looking statements to reflect future developments or events.
Important Limitations on Using News Releases
By their very nature, news releases are dated and time-sensitive, reflecting information that is current, or expectations that are believed to be reasonable, at the time of issuance. Reading an out-of-date new release can, therefore, be misleading and should never be relied upon as a current statement of fact or expectation.
WCI Steel, Inc. undertakes no responsibility to delete, edit or update information in old news releases that may no longer reflect current facts or expectations.
WCI Steel, Inc. Contacts:
ANALYSTS: Cynthia B. Bezik, Vice President and CFO, 330-841-8301
MEDIA: Elizabeth Kovach, Public Affairs Manager, 330-841-8213