Published on 3/12/2013 in the Prospect News High Yield Daily.
New Issue: Steel Dynamics prices $400 million 10-year notes at par to yield 5¼%
By Paul A. Harris
Portland, Ore., March 12 - Steel Dynamics, Inc. priced a $400 million issue of 10-year senior notes (Ba2/BB+/) at par to yield 5¼% on Tuesday, according to a syndicate source.
The yield printed at the tight end of yield talk set in the 5 3/8% area.
Joint physical bookrunner BofA Merrill Lynch will bill and deliver. Goldman Sachs & Co. and J.P. Morgan Securities LLC were also joint physical bookrunners.
Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC were joint bookrunners.
The Fort Wayne, Ind.-based steel producer and recycler plans to use the proceeds, along with available cash, to fund the tender offer for its 6¾% senior notes due 2015 and for general corporate purposes, including debt repayment, capital expenditures and working capital.
| Issuer: | Steel Dynamics, Inc.
|
| Amount: | $400 million
|
| Maturity: | April 15, 2023
|
| Securities: | Senior notes
|
| Bill and deliver: | BofA Merrill Lynch
|
| Physical bookrunners: | BofA Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities LLC
|
| Joint bookrunners: | Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC
|
| Co-managers: | PNC Capital Markets LLC, RBS Securities Inc.
|
| Coupon: | 5¼%
|
| Price: | Par
|
| Yield: | 5¼%
|
| Spread: | 323 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until April 15, 2018, then callable at 102.625, 101.750, 100.875, par on and after April 15, 2021
|
| Equity clawback: | 35% at 105.25 until April 15, 2016
|
| Change-of-control put: | 101%
|
| Trade date: | March 12
|
| Settlement date: | March 26
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 5 3/8% area
|
| Marketing: | Quick to market
|
© 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.
