NEW YORK (AP) -- Russian metals and mining company OAO Severstal on Monday said it completed its acquisition of Ohio steelmaker WCI Steel for $140 million in cash.
WCI Steel, which will be known as Severstal Warren Inc., has a total annual steel-making capacity of 1.2 million metric tons. Severstal said the addition of WCI will solidify its position in North America.
Under the terms of the agreement, originally announced in May, Severstal will pay $3.29 a share for WCI.
In connection with the deal, WCI called for redemption of all of the $100 million outstanding of its 8 percent senior secured notes due 2016. The notes will be redeemed on Aug. 6.
Citi and Raymond James acted as financial advisers and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal counsel to Severstal.
Moelis & Co. acted as financial adviser, while McDermott Will & Emery LLP acted as legal counsel to WCI. Kaye Scholer LLP acted as legal counsel to the special committee of the company's board.
