By Paul Deckelman
New York, March 28 - Steel Dynamics Inc. priced an upsized offering of $500 million eight-year senior notes (Ba2/BB+) on Wednesday at par to yield 6¾%.
The yield gave a spread of 212 basis points over Treasuries.
The quickly shopped deal came to market late in the session, preventing any aftermarket activity in the new bonds, traders said.
The Fort Wayne, Ind.-based owner and operator of steel mills, which produces flat-rolled steel products for the auto, appliance and industrial machinery markets, had announced during the morning that it would sell $400 million of new notes under Rule 144A, with registration rights, but the offering was upsized to meet demand by potential investors. It was brought to market via underwriters Banc of America Securities, Goldman Sachs and Morgan Stanley.
The bonds are non-callable for the first four years.
The company plans to use the proceeds from the new deal to redeem its $300 million of 9½% senior notes due 2009, to pay back outstanding loans from a senior secured revolving credit facility, to finance capital expenditures and for general corporate purposes.
| Issuer: | Steel Dynamics Inc.
|
| Amount: | $500 million (upsized from original $400 million)
|
| Security type: | Senior notes
|
| Underwriters: | Banc of America Securities, Goldman Sachs, Morgan Stanley
|
| Maturity: | April 1, 2015
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 212 basis points over 4 5/8% Treasury due Feb. 15, 2017
|
| Call: | Non-callable for first four years
|
| Equity clawback: | Until April 1, 2010, for up to 35% of issue at 106.75
|
| Settlement: | April 3
|
| Ratings: | Moody's: Ba2
|
| S&P: BB+
|
| Distribution: | Rule 144A with registration rights
|
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