Long-term Debt and Other Financing

9 Months Ended

Sep. 30, 2013

The Company’s debt balances, including current portions, were as follows:



	September 30, 2013			December 31, 2012
Credit Facility	$	185.0		$	—
8.75% Senior Secured Notes due December 2018	380.0			350.0
5.00% Exchangeable Senior Notes due November 2019 (effective rate of 10.8%)	150.0			150.0
7.625% Senior Notes due May 2020	529.8			550.0
8.375% Senior Notes due April 2022	290.2			300.0
Industrial Revenue Bonds due 2013 through 2030	100.3			100.9
Unamortized debt discount/premium, net	(34.2		)	(39.0		)
Total debt	1,601.1			1,411.9
Less:
Borrowings under Credit Facility classified as short-term	185.0			—
Current portion of long-term debt	0.7			0.7
Total long-term debt	$	1,415.4		$	1,411.2

During the period, the Company was in compliance with all the terms and conditions of its debt agreements.

Credit Facility

AK Steel has a $1.1 billion asset-backed revolving credit facility (“Credit Facility”) with a group of lenders that expires in April 2016. Availability under the Credit Facility fluctuates monthly based on the varying levels of eligible collateral. At September 30, 2013, the Company’s eligible collateral, after application of applicable advance rates, was $1,018.9. As of September 30, 2013, there were outstanding Credit Facility borrowings of $185.0. Availability as of September 30, 2013 was further reduced by $73.5 attributable to outstanding letters of credit, resulting in remaining availability of $760.4.

Senior Unsecured Notes

During the second quarter of 2013, the Company repurchased an aggregate principal amount of $20.2 and $9.8 of the 7.625% Senior Notes due May 2020 and the 8.375% Senior Notes due April 2022, respectively, in private, open market transactions. These repurchases were unsolicited and completed at a discount to the senior unsecured notes’ par value. The Company recognized a gain on the repurchases of $2.9 for the nine months ended September 30, 2013.

Senior Secured Notes

In June 2013, AK Steel issued $30.0 of aggregate principal amount (the “add-on notes”) of its 8.75% Senior Secured Notes due 2018 at an issue price of 106.5%, as an add-on to its outstanding $350.0 aggregate principal amount of such notes (collectively, the “Secured Notes”). The add-on notes will be treated as a single series with the existing notes and have the same terms as the existing notes. Net proceeds from this offering of $30.9 were used for general corporate purposes.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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