Subsequent Event - Acquisition

6 Months Ended

Jun. 30, 2014

Subsequent Events [Abstract]

Subsequent Event - Acquisition

Note 11.  Subsequent Event — Acquisition of Severstal Columbus, LLC

On July 18, 2014, the company entered into a definitive membership interest purchase agreement to acquire Severstal Columbus, LLC (Columbus) for a purchase price of $1.625 billion, on a cash-free, debt-free basis, subject to certain working capital adjustments. Located in northeast Mississippi, Columbus is one of the newest and most technologically advanced mini-mills in North America.  The transaction is planned to close prior to December 31, 2014, subject to customary closing conditions and regulatory approvals.  The purchase agreement contains customary representations, warranties, covenants, indemnification provisions and termination provisions. The company intends to fund the acquisition with available cash and debt, with the debt comprised of a combination of borrowings under its currently existing and undrawn $1.1 billion revolving credit facility and in new indebtedness.  To the extent it is needed, if at all, a consortium of banks has issued a commitment letter, subject to customary conditions, to provide the company with financing consisting of bridge loan facilities in the aggregate amount of $1.0 billion.