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Transaction/Case Details

Stelco Holdings Inc. closes US$100M Inventory Monetization Transaction

DATE CLOSED

December 11, 2017

BUSINESS SECTOR

General Manufacturers

LEAD OFFICE

Toronto

VALUE

100 Million USD


OVERVIEW

On December 11, 2017, Stelco Inc. completed its inventory monetization arrangement with J. Aron & Company LLC, an affiliate of Goldman Sachs Co. Stelco has agreed to transfer certain of its raw material inventory (including coal and iron ore) to a third party in consideration for net proceeds of approximately U.S.$100 million.

Stelco is a steel company based in Hamilton, Ont., and is a significant economic player for the City of Hamilton and the Canadian steel industry. Earlier in June 2017, Stelco emerged from CCAA proceedings and was purchased by Bedrock Industries, LP, a private equity firm focused on owning and operating metals, mining and natural resources assets and companies.

McCarthy Tétrault LLP advised J. Aron & Company LLC, the counterparty, with a team led by  Christopher Langdon that included D.J. Lynde (Lending), Douglas Cannon, Patrick McCay (Tax), Walker MacLeod, Sean Collins (Bankruptcy & Restructuring), Joanna Rosengarten (Environmental), John Boscariol (International Trade), Candace Pallone, and Michael Nicholas (Derivatives & Investment Products)

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