New Issue: Steel Dynamics upsizes to $125 million, prices tap of 7¾% notes due 2016 at par

By Paul A. Harris

St. Louis, April 15 - Steel Dynamics, Inc. priced an upsized $125 million add-on to its 7¾% senior notes due April 15, 2016 (Ba2/BB+) at par to yield 7¾% on Tuesday, according to an informed source.

The add-on priced on top of the price talk.

Banc of America Securities LLC, Morgan Stanley and Goldman Sachs & Co. were joint bookrunners for the Rule 144A with registration rights issue, which was upsized from $50 million. The co-managers were ABN Amro and Wells Fargo Securities.

Proceeds will be used for general corporate purposes, including financial capital expenditures, acquisitions or share repurchases.

The original $375 million issue priced at par on March 27.

Steel Dynamics is a Butler, Ind.-based rolled steel manufacturer.

Issuer:	Steel Dynamics, Inc.
Amount:	$125 million, upsized from $50 million
Maturity:	April 15, 2016
Security description:	Add-on to the 7¾% senior notes
Bookrunners:	Banc of America Securities LLC, Morgan Stanley, Goldman Sachs & Co.
Co-managers:	ABN Amro, Wells Fargo Securities
Coupon:	7¾%
Price:	Par
Yield:	7¾%
Spread:	452 bps
Call features:	Callable on April 15, 2012 at 103.875, 101.938, par on and after April 15, 2014
Equity clawback:	Until April 15, 2011 for 35% at 107.75
Trade date:	April 15
Settlement date:	April 18 with accrued interest
Ratings:	Moody's: Ba2
	Standard & Poor's: BB+
Distribution:	Rule 144A/Regulation S with registration rights
Price talk:	100.00
Original issue:	$375 million priced at par on March 27, 2008
Total issue size:	$500 million

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