AK Steel Holding (AKS)

Item 1.01 Entry into Material Definitive Agreement.

On February 20, 2007, AK Steel Corporation (the “Company”) entered into a Loan and Security Agreement with Bank of America, N.A., as Administrative and Collateral Agent, Wachovia Capital Finance Corporation (Central), as Syndication Agent, General Electric Capital Corporation, JPMorgan Chase Bank, N.A., and Fifth Third Bank, as Co-Documentation Agents, Banc of America Securities LLC, as Sole Lead Arranger and Sole Book Agent, and the lenders from time to time parties thereto as Lenders (the “Loan and Security Agreement”) for an $850 million, five-year senior secured revolving credit facility (the “Credit Facility”). Borrowings under the Credit Facility will be used for general corporate purposes.

The Company’s obligations under the Credit Facility will be secured by the Company’s inventory and accounts receivable and will be guaranteed by its parent company and two of its subsidiaries. Availability of borrowings under the Credit Facility from time to time is subject to a borrowing base calculation based upon a valuation of the Company’s eligible inventories (including raw materials, finished and semi-finished goods, work-in-process inventory, and in-transit inventory) and eligible accounts receivable, each multiplied by an applicable advance rate. Borrowings under the Credit Facility will bear interest at a base rate or, at the Company’s option, LIBOR, plus an applicable margin ranging from 0.00% to 0.75% per annum in the case of base rate borrowings, and 1.00% to 1.75% per annum in the case of LIBOR borrowings. The applicable interest rate margin percentage will be determined by the average daily availability of borrowings under the Credit Facility. In addition, the Company is required to pay a commitment fee on the undrawn commitments under the Credit Facility from time to time at an applicable rate of 0.25% per annum according to the average daily balance of borrowings under the Credit Facility during any month. The Credit Facility contains representations and warranties, affirmative, restrictive and financial covenants, and events of default (applicable to the Company, its parent and its subsidiaries) which are customary for credit facilities of this type.

On February 20, 2007, outstanding letters of credit under the Credit Facility totaled $166,684,259.24.

A copy of the Loan and Security Agreement is filed as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.