Steel Dynamics receives enough tenders, 82.09%, to amend 7¾% notes

By Susanna Moon

Chicago, Aug. 16 - Steel Dynamics, Inc. said holders tendered $62,146,000, or 14.79%, of its outstanding 7 3/8% senior notes due 2012 and $410,462,000, or 82.09%, of its 7¾% senior notes due 2016 by 5 p.m. ET on Aug. 15, the early tender date.

As noted, the company is tendering for up to $210 million of its $420 million outstanding 7 3/8% notes and for any and all of its $500 million outstanding 7¾% notes.

The company received the needed consents to amend the 7¾% notes and plans to enter into a supplemental indenture on Aug. 16, which will shorten the redemption notice period to three business days from 30 days prior to redemption.

The proposed amendments will become operative when the tendered notes are accepted for payment on Aug. 16, according to a company press release.

For each $1,000 principal amount, the company will pay $1,014.10 for the 7 3/8% notes and $1,041.75 for the 7¾% notes, both including an early premium of $30.00 for notes tendered by the early deadline.

The offer will end at 11:59 p.m. ET on Aug. 29. It began on Aug. 2.

Steel Dynamics will also pay accrued interest to the payment date.

The offer is conditioned on, among other things, sufficient financing.

The 7 3/8% notes have acceptance priority over the other series.

Bank of America Merrill Lynch (888 292-0070 or 980 683-3215) and Goldman Sachs & Co. (800 828-3182 or 212 357-0345) are the dealer managers. D.F. King & Co., Inc. (800 290-6427 or for banks and brokers 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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