Stelco Holdings Inc. announced that its wholly owned subsidiary, Stelco Inc. has completed the acquisition of lands beneficially owned by Legacy Lands Limited Partnership on which Stelco conducts its operations in Hamilton (approximately 760 acres) and Nanticoke, Ontario (approximately 2,300 acres), including lands in Hamilton that contain the Hamilton Works blast furnace and cast houses, as well as developable lands and port facilities.
The purchase price payable for the lands is approximately $114 million and will be financed with a 25-year, 8 percent per annum mortgage note.
In connection with the acquisition, existing lease arrangements between Stelco and Legacy Lands were terminated and the associated rental payments have been cancelled. In addition, Stelco has entered into an amended OPEB funding agreement that reduced Stelco's exposure to future variable funding requirements (including future excess free cash flow contributions) and provided the independent employee life and health trusts established as part of Stelco's CCAA reorganization, with a fixed funding commitment by Stelco.