Algoma Steel has finalized a $500-million financing agreement with the federal and provincial governments, a move company officials say will stabilize the steelmaker’s balance sheet as it continues its transition to electric arc furnace (EAF) technology.

The deal includes $400 million from the Canada Enterprise Emergency Funding Corporation — a subsidiary of the Canada Development Investment Corporation — and $100 million from the Ontario government. Portions of both contributions, $80 million and $20 million respectively, are secured loans.

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As part of the arrangement, Algoma issued 6.77 million common share purchase warrants to the two governments, proportionate to their contributions. The warrants allow the governments to buy Algoma shares for $11.08 over the next d

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