Steel Dynamics, Inc. has announced the completion of a notes offering and redemption call for its 5.000% notes due 2026. The company has sold $650 million aggregate principal amount of 4.000% notes due 2028, and an additional $150 million aggregate principal amount of 5.250% notes due 2035. The additional 2035 notes were issued at a price of 101.443% of their principal amount, with an implied yield of 5.053%.
The net proceeds from the issuance of the notes will be used to redeem the company’s $400 million 5.000% notes due 2026 and for other general corporate purposes.
Theresa E. Wagler, Executive Vice President and Chief Financial Officer, expressed satisfaction with the execution and support for the investment grade note offering, emphasizing the transaction's contribution to the company's near-term flexibility and long-term strategy.
The company has called for the redemption of $400 million of the 2026 notes, with the redemption date set for December 21, 2025. The redemption price for the 2026 notes will be at 100.000%, plus accrued and unpaid interest to, but not including, the redemption date.
Steel Dynamics also provided details of the firms acting as joint book-running managers, senior co-managers, and co-managers for the offering of the notes.
As a result of these announcements, the company's shares have moved 3.61% on the market, and are now trading at a price of $158.64. For more information, read the company's full 8-K submission here.
