Steel Dynamics, Inc. has announced its completion of a notes offering and redemption call for its 5.000% notes due 2026. The company 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 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.
The additional 2035 notes were issued at a price of 101.443% of their principal amount, with an implied yield of 5.053%. This issuance will be consolidated and form a single series with the company’s outstanding $600 million 5.250% notes due 2035, which were issued on March 12, 2025.
The redemption date for the 2026 notes will be December 21, 2025, and 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 is committed to maintaining its investment grade credit ratings, which are believed to provide lower-cost and longer-term capital, enhancing the company's financial strength and enabling optionality for value creation opportunities.
The company also named the financial entities involved in the notes offering, with J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BofA Securities, Inc., Wells Fargo Securities, LLC, Goldman Sachs & Co. LLC, and PNC Capital Markets LLC acting as joint book-running managers.
Steel Dynamics, Inc. is a leading industrial metals solutions company, operating with a circular manufacturing model and producing quality products with recycled scrap as the primary input. The company is one of the largest domestic steel producers and metal recyclers in North America and is currently investing in aluminum operations to further diversify its product offerings. Following these announcements, the company's shares moved 3.3%, and are now trading at a price of $158.16. For more information, read the company's full 8-K submission here.
