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 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 company stated that the execution and support for the investment grade note offering were very pleasing. The transaction is expected to further the company's near-term flexibility and enhance its long-term strategy to provide a strong capital foundation in support of its teams, customers, shareholders, and continued growth.
Steel Dynamics also announced 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. After the redemption date, the 2026 notes will no longer be outstanding, and interest will cease to accrue.
The company's commitment to maintaining its investment grade credit ratings is emphasized as it is believed to provide lower-cost and longer-term capital, enhancing its financial strength and enabling optionality for value creation opportunities.
The announcement also includes the names of the financial firms involved in the offering of the notes and provides contact details for questions relating to redemption.
Steel Dynamics, Inc. is described as 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 aims to be the safest, most efficient producer of high-quality, broadly diversified, value-added metal products. 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. For more information, read the company's full 8-K submission here.
