FORT WAYNE, Ind., Dec. 11, 2019 /PRNewswire/ -- Steel
Dynamics, Inc. (the "Company") (NASDAQ/GS: STLD) announced today
that it has consummated the sale of $400
million aggregate principal amount of 2.800% Notes due 2024
(the "2024 Notes") and $600 million
aggregate principal amount of 3.450% Notes due 2030 (together with
the 2024 Notes, the "Notes"). The net proceeds from the Notes will
be used to redeem or satisfy and discharge the entire $700 million of the Company's 5.125% Senior Notes
due 2021 (the "2021 Notes") in accordance with the indenture
governing the Company's 2021 Notes and for general corporate
purposes.
"We are extremely pleased with the tremendous broad support and
execution of our inaugural investment grade offering," stated
Theresa E. Wagler, Executive Vice
President and Chief Financial Officer. "This transaction further
strengthens our capital foundation and liquidity profile. Our
recent investment grade credit rating designation creates avenues
to access lower cost and longer tenor capital, providing long-term
optionality and value creation opportunities."
The issuance of the Notes and retirement of the 2021 Notes, when
fully consummated, will enable the Company to extend its debt
maturity profile and reduce its effective interest rate.
Additionally, the Company announced today that it has called for
redemption the entire $700 million of
the 2021 Notes. The redemption date for the 2021 Notes
will be January 10, 2020. The
redemption price for the 2021 Notes will be at 100.000%, plus
accrued and unpaid interest to, but not including, the redemption
date. On and after the redemption date, the 2021 Notes will no
longer be deemed outstanding, interest will cease to accrue thereon
and all rights of any remaining holders of 2021 Notes will
cease to exist, except for the right to receive the redemption
price, without interest thereon. The notice of redemption
containing information required by the terms of the indenture,
dated as of September 9, 2014, as
supplemented and amended, governing the 2021 Notes, was sent to
registered holders of the 2021 Notes on December 11, 2019. The 2021 Notes are to be
surrendered to Wells Fargo Bank, National Association, as trustee
and paying agent, in exchange for payment of the redemption price
on the redemption date.
Questions relating to redemption should be directed to Wells
Fargo Bank, National Association at (800) 344-5128 or by fax at
(612) 667-6282.
This announcement is neither an offer to sell nor a solicitation
of an offer to buy the Notes or any other securities, and shall not
constitute an offer, solicitation or sale of any securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful.
About Steel Dynamics, Inc.
Steel Dynamics is one of the largest domestic steel producers
and metals recyclers in the United
States based on estimated annual steelmaking and metals
recycling capability, with facilities located throughout
the United States, and in
Mexico. Steel Dynamics produces steel products, including hot
roll, cold roll, and coated sheet steel, structural steel beams and
shapes, rail, engineered special-bar-quality steel, cold finished
steel, merchant bar products, specialty steel sections and steel
joists and deck. In addition, the company produces liquid pig
iron and processes and sells ferrous and nonferrous scrap.
Forward-Looking Statements
This press release contains some predictive statements about
future events, including statements related to conditions in
domestic or global economies, conditions in steel and recycled
metals market places, Steel Dynamics' revenues, costs of purchased
materials, future profitability and earnings, and the operation of
new, existing or planned facilities. These statements, which we
generally precede or accompany by such typical conditional words as
"anticipate", "intend", "believe", "estimate", "plan", "seek",
"project", or "expect", or by the words "may", "will", or "should",
are intended to be made as "forward-looking," subject to many risks
and uncertainties, within the safe harbor protections of the
Private Securities Litigation Reform Act of 1995. These statements
speak only as of this date and are based upon information and
assumptions, which we consider reasonable as of this date,
concerning our businesses and the environments in which they
operate. Such predictive statements are not guarantees of future
performance, and we undertake no duty to update or revise any such
statements. Some factors that could cause such forward-looking
statements to turn out differently than anticipated include: (1)
the effects of uncertain economic conditions; (2) cyclical and
changing industrial demand; (3) changes in conditions in any of the
steel or scrap-consuming sectors of the economy which affect demand
for our products, including the strength of the non-residential and
residential construction, automotive, manufacturing, appliance,
pipe and tube, and other steel-consuming industries; (4)
fluctuations in the cost of key raw materials and supplies
(including steel scrap, iron units, zinc, graphite electrodes, and
energy costs) and our ability to pass on any cost increases; (5)
the impact of domestic and foreign imports, including trade policy,
restrictions, or agreements; (6) unanticipated difficulties in
integrating or starting up new, acquired or planned businesses or
assets; (7) risks and uncertainties involving product and/or
technology development; and (8) occurrences of unexpected plant
outages or equipment failures.
More specifically, we refer you to Steel Dynamics' more detailed
explanation of these and other factors and risks that may cause
such predictive statements to turn out differently, as set forth in
our most recent Annual Report on Form 10-K under the headings
Special Note Regarding Forward-Looking Statements and Risk Factors,
in our quarterly reports on Form 10-Q or in other reports which we
from time to time file with the Securities and Exchange Commission.
These are available publicly on the SEC website, www.sec.gov, and
on the Steel Dynamics website, www.steeldynamics.com: Investors:
SEC Filings.
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SOURCE Steel Dynamics, Inc.