Steel Dynamics, Inc. Completes $800M Notes Offering

By Hao Liu • Monday, November 24 06:03 • 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 consummated 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%. 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.

Steel Dynamics' executive vice president and chief financial officer, Theresa E. Wagler, expressed satisfaction with the execution and support for the investment grade note offering, stating that the transaction furthers the company's near-term flexibility and enhances its long-term strategy. The company remains committed to maintaining its investment grade credit ratings, which it believes provide lower-cost and longer-term capital, enhancing its financial strength and enabling optionality for value creation opportunities.

In addition to the notes offering, 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 has also disclosed the involvement of various financial institutions in the offering of the notes, including 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, among others.

Steel Dynamics, Inc. is a leading industrial metals solutions company, with facilities located throughout the United States and in Mexico. The company operates using a circular manufacturing model, producing lower-carbon-emission, quality products with recycled scrap as the primary input. It is one of the largest domestic steel producers and metal recyclers in North America, combined with a meaningful downstream steel fabrication platform. The company is also currently investing in aluminum operations to further diversify its product offerings. The market has reacted to these announcements by moving the company's shares 3.3% to a price of $158.16. For the full picture, make sure to review STEEL DYNAMICS INC's 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.