| Deal Description | The Colorado Fuel and Iron Corporation used the net proceeds from this transaction for the following purposes: to redeem outstanding bonds, to prepay outstanding promissory notes, and to finance in part the program of plant improvement and additions, including the construction of the proposed seamless pipe mill at the Pueblo, Colorado plant, and for other corporate purposes. The seamless pipe was needed primarily in the oil and gas industry in the Western and Southwestern States, which formed a natural market for the seamless pipe. The major portion of the nation's seamless pipe, at the time of the deal, was produced in the states of Ohio and Pennsylvania, and required long cross-country transportation to reach the Western oil fields. In contrast Pueblo, Colorado, was centrally located to the sites of 80% of the known crude oil reserves of the United States. |
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