Overview

• Binding term sheets cover C$400 million from Ottawa’s Large Enterprise Tariff Loan program and C$100 million from Ontario.
• The facilities carry a seven‑year term with interest at CORRA plus 200 bps for three years, stepping up by 200 bps annually thereafter.
• A C$400 million unsecured tranche is tied to 6.77 million share purchase warrants exercisable at C$11.08 for 10 years, alongside customary covenants and distribution limits.
• Access to funds remains subject to definitive loan documentation and required approvals under Algoma’s first‑lien revolving facility.
• Algoma will accelerate the shutdown of its blast furnace and ramp its electric arc furnaces, now budgeted at about C$987 million, refocusing on Canadian plate and select coil as 50% U.S. tariffs have effectively closed that market and threatened 2,500–2,800 jobs.