The offering contains a 30-day option for underwriters to purchase up to an additional 5.25 million shares of common stock.
AK Steel also priced a public offering of $430 million of 7.625% senior notes due 2021, which the company offered to the public at a price of 99.325% of par. The company will pay interest on the notes twice a year on April 1 and October 1 of each year. Interest on the notes will accrue starting on September 16, 2014, and the notes will mature on October 1, 2021.
More than 23.2 million shares changed hands as of 9:58 a.m., compared to the average volume of 7,230,290.
Separately, TheStreet Ratings team rates AK STEEL HOLDING CORP as a "sell" with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate AK STEEL HOLDING CORP (AKS) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and poor profit margins."