By Paul A. Harris
St. Louis, Oct. 4 - Steel Dynamics, Inc. priced an upsized $700 million issue of five-year senior bullet notes (Ba2/BB+) at par to yield 7 3/8% on Thursday, according to an informed source.
The notes, which came in a quick-to-market Rule 144A with registration rights transaction, was upsized from $500 million and priced on top of the price talk.
Banc of America Securities LLC, Goldman Sachs & Co. and Morgan Stanley were joint bookrunners. NatCity Investments and Wells Fargo Securities were co-managers.
Proceeds will be used to partially finance the acquisition of Omnisource. If the acquisition is not consummated, the proceeds will be used to repay bank debt and for general corporate purposes.
The issuer is a Fort Wayne, Ind.-based owner and operator of steel mills, which produces flat-rolled steel products for the auto, appliance and industrial machinery markets.
| Issuer: | Steel Dynamics, Inc.
|
| Amount: | $700 million (increased from $500 million)
|
| Maturity: | Nov. 1, 2012
|
| Security description: | Senior notes
|
| Bookrunners: | Banc of America Securities LLC, Goldman Sachs & Co. Morgan Stanley
|
| Co-managers: | NatCity Investments, Wells Fargo Securities
|
| Coupon: | 7 3/8%
|
| Price: | Par
|
| Yield: | 7 3/8%
|
| Spread: | 318 bps
|
| Call protection: | Non-callable
|
| Equity clawback: | Until Nov. 1, 2010 for 35% at 107.375
|
| Change-of-control put: | 101.0
|
| Trade date: | Oct. 4
|
| Settlement date: | Oct. 12
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB+
|
| Distribution: | Rule 144A with registration rights/Regulation S
|
| Price talk: | 7 3/8% area
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
