New Issue: Steel Dynamics prices $350 million 4 1/8% eight-year notes at par

By Paul A. Harris

Portland, Ore., Sept. 6 – Steel Dynamics, Inc. priced a $350 million issue of eight-year senior notes (Ba1/BB+) at par to yield 4 1/8% on Wednesday, according to market sources.

The yield printed 12.5 basis points below the tight end of the 4¼% to 4½% yield talk. Initial guidance was in the mid-4% area.

Physical bookrunner BofA Merrill Lynch will bill and deliver. J.P. Morgan Securities LLC was also a physical bookrunner. Goldman Sachs & Co., Morgan Stanley & Co. LLC and Deutsche Bank Securities Inc. were joint bookrunners.

The Fort Wayne, Ind.-based steel producer and metals recycler plans to use the proceeds to tender for and/or redeem its 6 3/8% senior notes due 2022.

Issuer:	Steel Dynamics, Inc.
Amount:	$350 million
Maturity:	Sept. 15, 2025
Securities:	Senior notes
Physical bookrunners:	BofA Merrill Lynch (bill and deliver), J.P. Morgan Securities LLC
Joint bookrunners:	Goldman Sachs & Co., Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc.
Co-managers:	BMO Capital Markets Corp., PNC Capital Markets LLC, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC
Coupon:	4 1/8%
Price:	Par
Yield:	4 1/8%
Spread:	211 bps
Call protection:	Make-whole call at Treasuries plus 50 bps until Sept. 15, 2020, then callable at a premium
Trade date:	Sept. 6
Settlement date:	Sept. 13
Ratings:	Moody's: Ba1
	S&P: BB+
Distribution:	Rule 144A and Regulation S
Price talk:	4¼% to 4½%
Marketing:	Quick to market

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