Gerdau Ameristeel Corp.has announced the completion of its offering of 70
million common shares, of which Gerdau S.A., its parent company, has indirectly purchased 35 million common shares. The remaining 35 million common shares have been purchased by an underwriting syndicate for
distribution to the public.
The common shares were sold in the United States and in Canada at a price of $4.70, or CAN $5.90, per share for total gross proceeds of $329 million, or CAN $413 million. If the underwriters exercise their overallotment option in full (for 5.25 million common shares) and Gerdau S.A., as it has agreed, purchases an additional 5.25 million common shares, the total gross proceeds will be approximately $378 million, or CAN $475 million.
The proceeds of this offering will be used to finance Gerdau Ameristeel's
previously announced proposed acquisition of certain assets and working
capital of four long steel product mills and four downstream facilities, which
are referred to as North Star Steel from Cargill, Inc. to fund
capital expenditures and working capital and for general corporate purposes.
Merrill Lynch, Pierce, Fenner & Smith Inc. and BMO Nesbitt Burns
Inc. were joint book-running managers for the public offering in the United
States and Canada. CIBC World Markets Corp., J.P. Morgan Securities Inc. and Morgan Stanley & Co. Inc. acted as underwriters.
The common shares began trading on the New York Stock Exchange Oct. 15, 2004, under the symbol GNA.
Gerdau Ameristeel is the second largest minimill steel producer in North
America with annual manufacturing capacity of more than 6.4 million tons of mill finished steel products. Through its vertically integrated network of
11 minimills (including one 50-percent-owned minimill), 13 scrap recycling facilities and 32 downstream operations, Gerdau Ameristeel primarily serves customers in the eastern half of North America.
The company's products are generally sold to steel service centers, fabricators, or directly to original equipment manufacturers for use in a variety of industries, including construction, automotive, mining and equipment manufacturing.
Gerdau Ameristeel's common shares are traded on the Toronto Stock
Exchange under the symbol GNA.TO and on the New York Stock Exchange under the symbol GNA.