"Deal of the Year" Award from Project Finance (SeverCorr).
 
SeverCorr Receives "Deal of the Year" Award from Project Finance

Cleveland, OH Mar 07, 2006 SeverCorr, a newly formed steel company, is being honored today by Project Finance Magazine with their prestigious "Deal of the Year" award. The award ceremony will take place at Gotham City Hall, New York City at 7 p.m.

Project Finance Magazine honors several candidates in different categories annually throughout the world. Candidates are either nominated or entered based on general interest generated within their respective industry. Industries covered include: telecoms, power, oil, gas, rail, roads, bridges, tunnels, water, ports, airports, stadiums, property and tourism development, petrochemicals, mining, and private and public partnerships.

Project Finance Magazine's editor, Tom Nelthorpe, said "Project Finance Magazine's Deals of the Year recognize innovation excellence and innovation in infrastructure finance. The winning transactions are chosen after extensive evaluation and consultation with the investment community. The SeverCorr transaction was one of the more unusual transactions we considered. It was unprecedented in both its industry and the project finance market."

Supported by $880 million in project financing, SeverCorr will construct and manage a technologically advanced flat-rolled steel mini mill. The new mill is designed to produce 1.5 million tons of high-quality steel annually for use in the southern United States steel market. Approximately 2,000 construction-related jobs will be created during the next 24 months and nearly 450 people will be employed when the production facilities are fully operational.

Many view this deal as successful due to the strong management team and unique approach SeverCorr's financial advisor, Cleveland-based Global Principal Partners, took in arranging the $880 million of financing for the project. "This transaction is unique in that all transaction participants have significant "skin in the game" through completion of the project. For example, the majority of the vendor payments are linked to the long-term performance of SeverCorr", stated David Stickler, senior managing director of Global Principal Partners.

"The industry expertise and proven track record of SeverCorr's senior management team was a clear differentiator in this deal" said Greg Wicander, senior vice president at GE Commercial Finance, which arranged $440 million of the senior financing. "Their knowledge and experience allowed us to push the envelope in terms of structuring a deal that does not conform to the traditional tenets of project financing."

"To not only be nominated, but also to be chosen as the recipient of this award, truly demonstrates the great impact SeverCorr has already made in its industry," said John Correnti, CEO SeverCorr. "We are pleased and honored to be recognized for what we certainly all believe was the project finance deal of the year for us, our vendors, financial providers and the state of Mississippi.

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