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

Date Closed

December 11, 2017

Lead Office

Toronto

Value

100.00 Million USD

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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