Steel Dynamics Completes $800M Notes Offering and Calls for Redemption

By Bobby Samwell • Sunday, November 23 06:03 • Permanent Link

Steel Dynamics, Inc. (NASDAQ/GS: STLD) has recently completed a notes offering, announcing the sale of $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%. These proceeds will be used to redeem the company’s $400 million 5.000% notes due 2026 and for general corporate purposes.

The company also revealed that it 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' executive vice president and chief financial officer, Theresa E. Wagler, emphasized the company's commitment 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 has enlisted 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. Additionally, BMO Capital Markets Corp., Citizens JMP Securities, LLC, Fifth Third Securities, Inc., and Truist Securities, Inc. are acting as senior co-managers, while BBVA Securities Inc. and U.S. Bancorp Investments, Inc. are acting as co-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 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, with a meaningful downstream steel fabrication platform. Furthermore, the company is making investments in aluminum operations to diversify its product offerings, with plans to supply aluminum flat rolled products with high recycled content to the countercyclical sustainable beverage can industry, in addition to the automotive and industrial sectors. As a result of these announcements, the company's shares have moved 3.3% on the market, and are now trading at a price of $158.16. Check out the company's full 8-K submission here.

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