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AK Steel Announces Pricing Of $150 Million Exchangeable Senior Notes Offering

WEST CHESTER, Ohio, Nov. 14, 2012 /PRNewswire/ -- AK Steel Holding Corporation (NYSE: AKS) ("AK Holding") announced today that its subsidiary, AK Steel Corporation ("AK Steel"), has successfully priced a public offering of $150 million of 5.00% exchangeable senior notes due 2019 (the "notes").  AK Steel also agreed to grant the underwriters a 30-day option to purchase up to an additional $22.5 million aggregate principal amount of notes.

AK Steel will pay interest on the notes semi-annually on May 15 and November 15 of each year, beginning on May 15, 2013, at a rate of 5.00% per annum.  The notes will mature on November 15, 2019.  The notes will be fully and unconditionally guaranteed on a senior unsecured basis by AK Holding.  Upon exchange of the notes, AK Steel will pay cash up to the aggregate principal amount of the notes to be exchanged and pay or deliver, as the case may be, cash, shares of AK Holding common stock or a combination of cash and shares of AK Holding common stock, at AK Steel's election, in respect of the remainder, if any, of its exchange obligation in excess of the aggregate principal amount of the notes being exchanged.  The exchange rate will initially be 185.1852 shares of AK Holding common stock per $1,000 principal amount of notes (which is equivalent to an initial exchange price of approximately $5.40 per share of AK Holding common stock and represents an approximately 35% exchange premium over the public offering price of the AK Holding common stock offered by AK Holding in the concurrent public offering described below).

AK Steel intends to use the net proceeds from the sale of the notes to repay borrowings under its asset-backed revolving credit facility and for general corporate purposes.  The offering is expected to close on November 20, 2012, subject to customary closing conditions.

Concurrently with this pricing of notes, AK Holding announced the pricing of its public offering of common stock, agreeing to sell 22 million shares of common stock at a public offering price of $4.00 per share.

The joint book-running managers for the offering are Credit Suisse, J.P. Morgan, Citigroup, Wells Fargo Securities, Morgan Stanley and BofA Merrill Lynch.

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