Gerdau Ameristeel completes US$4.22 billion acquisition of Chaparral Steel Company

Torys acted as counsel to Gerdau Ameristeel on the Canadian aspects of the acquisition, and on the Canadian and U.S. aspects of the financing for the acquisition and tender offer, with a team that included Karrin Powys-Lybbe (corporate/securities), Jonathan Weisz, Alexandra Kau, Scott Kraag, Jonathan Wiener, Vanessa Kee, Renée Laliberté and Mark Tice (financing) and John Tobin, Peter Keenan and Gregg Larson (tax).

On September 14, 2007, Gerdau Ameristeel Corporation (NYSE: GNA, TSX: GNA) announced the completion of its acquisition of Chaparral Steel Company for US$86 per share in cash, valuing Chaparral Steel's equity at US$4.22 billion. Concurrently with the acquisition, Gerdau Ameristeel made a tender offer for Chaparral Steel's outstanding 10% senior notes.

Gerdau Ameristeel's acquisition of Chaparral Steel was financed, in part, by a US$1.15 billion bridge loan facility and a US$2.75 billion term loan facility, which were provided by two separate international banking syndicates, each arranged by ABN AMRO Bank N.V., HSBC Securities (USA) Inc. and JP Morgan Securities, Inc. (financial adviser to Gerdau Ameristeel and Gerdau Group).

Further information is found on Gerdau Ameristeel's website.