Steel Dynamics tenders for $350 million 7 3/8% senior notes due 2012

By Susanna Moon

Chicago, Dec. 27 - Steel Dynamics, Inc. said it began a cash tender offer for up to $350 million of the $700 million outstanding 7 3/8% senior notes due 2012.

The total purchase price will be $1,046.67 for each $1,000 principal amount, including a premium of $30.00, for notes tendered by the early tender deadline, 5 p.m. ET on Jan. 10.

The company also will pay accrued interest up to but excluding the payment date.

The offer will run until 11:59 p.m. ET on Jan. 25.

Holders who tender after the early date will be ineligible to receive the early tender premium.

Tendered notes may be withdrawn prior to the early tender deadline.

If the amount of tendered notes exceeds the offer cap, the company will purchase notes on a prorated basis.

In addition to the offer, the company is pursuing its rights under its senior secured revolving credit facility to secure a new $315 million term loan. It will use the proceeds, along with available cash, to fund the tender offer.

The offer is not contingent on the company securing the new term loan.

Bank of America Merrill Lynch (888 292-0070 or collect 980 683-3215) is the dealer manager. D.F. King & Co., Inc. (800 290-6427 or banks and brokers call 212 269-5550) is the information agent.

Steel Dynamics is a Fort Wayne, Ind.-based manufacturer and seller of steel products.

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