Stelco pitches plan for growth in its proposed initial public offering

HAMILTON — Stelco Holdings Inc. is pitching itself as a leaner and more disciplined steelmaker with prospects for growth as it hopes to entice investors to its initial public offering.

“Stelco has undergone a transformational change that has directly addressed several of the challenges the business faced in its history,” the company said in its preliminary prospectus filed with securities regulators.

“We are now well positioned to continue our operational and financial turnaround and sustain this performance over the long-term.”

The company has not determined the number of shares to be sold or the price per share, but it says it wants to spend the money raised to fund capital expenditures and pension obligations.

The IPO plans come after two restructurings under court protection from creditors, the most recent completed this past summer.

The company said its most recent restructuring enabled it to eliminate $3 billion in debt. It also extinguished $1.4 billion in pension and benefit obligations in exchange for fixed payments and formula-based contributions based on the business’s cash flow.

At June 30, Stelco said the only debt on its balance sheet was $68 million drawn on a $375 million credit facility.

Steel industry analyst Charles Bradford said Stelco faces several challenges including U.S. President Donald Trump and what he might propose regarding U.S. steel imports.

“We don’t know yet for example what’s going to happen,” said Bradford, who had been expecting the IPO.

He said it will be up to the new management to show that they can deliver, noting that the former Dofasco operations in Hamilton that are owned by ArcelorMittal have been consistently profitable.

In its plan to grow its business, Stelco said it has significant excess capacity and as a result its assets are being underutilized.

“We are actively pursuing initiatives, including purchases of external slab and toll-rolling for third-parties, that can be implemented with limited investment to improve asset utilization.

“In addition to utilizing excess capacity, we plan to optimize our assets by continuing to pursue initiatives such as capturing, recycling, and selling the by-products generated in our production process.”

Stelco filed for creditor protection under the Companies’ Creditors Arrangement Act in 2004 and completed a restructuring in 2006.

It was acquired in 2007 by United States Steel Corp. which dropped the Stelco name in favour of U.S. Steel Canada. It ended up back under court protection from creditors in 2014.

Bedrock Industries acquired the company’s operations earlier this year and restored the Stelco name.

Just Posted

Ice Sculpture tradition continues at local business in Red Deer County

Every year, the Parkland Nurseries & Garden Centre in Red Deer County… Continue reading

Sylvan Lakers vote on Winter Village planters

Sylvan Lakers came out to visit the Winter Village this evening to… Continue reading

Vancouver concert promoter bans Nazi symbols at shows

A man was witnessed making a Nazi salute during a heavy metal show at Pub 340

WATCH: A Russian new year party in Red Deer

Hundreds fill the G.H. Dawe Community Centre for the 10th Russian Children’s New Year Party

Car hits moose north of Red Deer, driver in hospital with life threatening injuries

One person was airlifted to hospital, and another taken by ambulance after… Continue reading

Watch: Man plays flaming bagpipes while riding a unicycle in a ‘Star Wars’ costume

The sight of Darth Vader, riding a unicycle and playing flaming bagpipes,… Continue reading

Owl found dead after eating rat poison leaves B.C. woman concerned

After finding the owl on her Surrey property, Christine Trozzo says the poison is a concern for kids

Dying man’s wish to see new ‘Star Wars’ movie coming true

A dying man’s wish to see the new “Star Wars” movie is… Continue reading

Bountiful polygamist believed he couldn’t be prosecuted: lawyer

Winston Blackmore’s lawyer says Blackmore did not believe he could be prosecuted

Trudeaus, Mulroneys, Erdem? Canadians who could snag a royal wedding invite

Save the date. Kensington Palace announced Friday that Prince Harry and Meghan… Continue reading

More to be done to ensure timely justice, retiring Beverley McLachlin says

Canada’s retiring top judge says more must be done to ensure the… Continue reading

Labrador mayor who was shot in face in hunting accident has died

John Hickey accidently shot himself while checking rabbit snares

Shelter dogs could go vegan in Los Angeles

Los Angeles may soon be home to a lot more vegan dogs.… Continue reading

The coolest way to serve coffee at dinner’s end

I can put together a decent dinner party. But when it comes… Continue reading

Most Read


Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month