Steel Dynamics, Inc. Completes $800M Notes Offering

By Greg Peters • Sunday, November 23 15:24 • 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 successfully 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. The redemption date for the 2026 notes will be December 21, 2025, at a redemption price of 100.000%, plus accrued and unpaid interest to, but not including, the redemption date.

Theresa E. Wagler, Executive Vice President and Chief Financial Officer, expressed pleasure with the execution and support for the investment grade note offering, highlighting that the transaction enhances the company’s long-term strategy to provide a strong capital foundation in support of its teams, customers, shareholders, and continued growth.

Steel Dynamics, Inc. also announced that it has called for the redemption of $400 million of the 2026 notes, with the redemption date set for December 21, 2025. The 2026 notes will no longer be deemed outstanding, and all rights of any remaining holders of 2026 notes will cease to exist, except for the right to receive the redemption price, without interest thereon.

The company has appointed 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 for the offering of the notes.

Steel Dynamics, Inc. is a leading industrial metals solutions company operating with a circular manufacturing model and producing lower-carbon-emission, 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.

The market has reacted to these announcements by moving the company's shares 3.3% to a price of $158.16. For more information, read the company's full 8-K submission here.

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