New Issue: Steel Dynamics prices $400 million 10-year notes at par to yield 5%

By Paul A. Harris

Portland, Ore., Nov. 29 – Steel Dynamics, Inc. priced a $400 million issue of 10-year senior notes (Ba2/BB+) at par to yield 5% on Tuesday, according to a market source.

The yield printed at the tight end of the 5% to 5 1/8% yield talk. Initial guidance was in the low 5% area.

BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Goldman Sachs & Co. were the bookrunners.

The Fort Wayne, Ind.-based steel producer and metals recycler plans to use the proceeds, along with cash on hand, to purchase any and all of its 6 1/8% senior notes due 2019 via tender and/or redemption.

Issuer:	Steel Dynamics, Inc.
Amount:	$400 million
Maturity:	Dec. 15, 2026
Securities:	Senior notes
Bookrunners:	BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Goldman Sachs & Co.
Coupon:	5%
Price:	Par
Yield:	5%
Spread:	266 bps
First call:	Make-whole call at Treasuries plus 50 bps until Dec. 15, 2021, then callable at 102.5
Trade date:	Nov. 29
Settlement date:	Dec. 6
Ratings:	Moody's: Ba2
	S&P: BB+
Distribution:	Rule 144A
Price talk:	5% to 5 1/8%
Marketing:	Quick to market

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