Published on 3/11/2010 in the Prospect News High Yield Daily.
New Issue: Steel Dynamics prices upsized $350 million 10-year senior notes at par to yield 7 5/8%
By Paul A. Harris
St. Louis, March 11 - Steel Dynamics, Inc. priced an upsized $350 million issue of 10-year senior notes (Ba2/BB+/) at par to yield 7 5/8% on Thursday, according to an informed source.
The yield printed at the tight end of the 7¾% area price talk.
Bank of America Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities Inc. and Morgan Stanley & Co. Inc. were the joint bookrunners for the quick-to-market deal, which was upsized from $300 million.
Proceeds will be used to repay bank debt and for general corporate purposes.
The issuer is a Fort Wayne, Ind.-based steel manufacturer.
Issuer: | Steel Dynamics, Inc.
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Amount: | $350 million, increased from $300 million
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Maturity: | March 15, 2020
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Securities: | Senior notes
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Bookrunners: | Bank of America Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities Inc., Morgan Stanley & Co. Inc.
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Coupon: | 7 5/8%
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Price: | Par
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Yield: | 7 5/8%
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Spread: | 390 bps
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Call features: | Make-whole call at Treasuries plus 50 bps until April 1, 2014, the callable at 104.563, 102.281, par on and after April 1, 2016
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Equity clawback: | 35% at 109.125 through March 15, 2013
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Trade date: | March 11
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Settlement date: | March 22
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Ratings: | Moody's: Ba2
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| Standard & Poor's: BB+
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Distribution: | Rule 144A with registration rights/Regulation S
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Price talk: | 7¾% area
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