On March 26, 2024, Algoma Steel Group Inc. announced the pricing of its subsidiary Algoma Steel Inc.'s (ASI) inaugural US$350 million (C$504 million) Rule 144A/Regulation S offering of 9.125% Senior Secured Second Lien Notes due 2029. Issued at face value, the notes were guaranteed by ASI’s subsidiaries on both sides of the Canada-U.S. border. The offering closed on April 5, 2024, with proceeds allocated to general corporate purposes and the continued construction of Algoma’s electric arc furnaces. This transition will make Algoma the first integrated steel producer in North America to shift away from blast furnace steel production, reducing its carbon emissions by approximately 70%—one of Canada’s largest emissions reduction projects.

Paul, Weiss and Goodmans represented Algoma, while Skadden and Stikeman Elliott advised the underwriting syndicate led by Jefferies LLC, BMO Capital Markets, Stifel, and Cormark Securities. The legal teams navigated complex regulatory, tax, and capital markets requirements, ensuring compliance with lending agreements and government approvals. The transaction strengthened Algoma’s financial flexibility as it undertakes its large-scale decarbonization efforts.