Steel Dynamics Completes $650M Notes Offering

By Tamara Parker • Saturday, November 22 15:30 • Permanent Link

Steel Dynamics, Inc. has announced the completion of a notes offering and a 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 5.250% notes due 2035 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.

Furthermore, 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, Inc. emphasized its commitment to maintaining its investment grade credit ratings, which it believes provides lower-cost and longer-term capital, enhancing its financial strength and enabling optionality for value creation opportunities.

The company operates as a leading industrial metals solutions company with facilities in the United States and Mexico, using a circular manufacturing model and producing quality products with recycled scrap as the primary input. It is one of the largest domestic steel producers and metal recyclers in North America, with a significant downstream steel fabrication platform. Additionally, Steel Dynamics, Inc. is investing in aluminum operations to diversify its product offerings and plans to supply aluminum flat rolled products with high recycled content to various industries.

The offering of the notes was managed by 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 as joint book-running managers, with several other firms acting as co-managers for the offering of the notes. The market has reacted to these announcements by moving the company's shares 3.3% to a price of $158.16. Check out the company's full 8-K submission here.

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