FORT WAYNE, Ind., Nov. 14, 2014 /PRNewswire/ -- Steel Dynamics,
Inc. (the "Company") (NASDAQ/GS: STLD) announced today that it has
amended, restated and expanded its senior secured revolving credit
facility and entered into a new term loan facility. The
Company has expanded its senior secured revolving credit facility
from the prior $1.1 billion level to
a renewed five year $1.2 billion
facility and also entered into a new five year $250.0 million term loan facility, both of which
mature on November 14, 2019 (the
"Maturity Date").
Subject to certain conditions, the Company also has the ability
to increase the combined facility size by a minimum of $750 million. The facilities are guaranteed
by certain Steel Dynamics subsidiaries and are secured by
substantially all of the Company's accounts receivable and
inventories. The proceeds from the new term loan facility
will be used to refinance the Company's existing $226.9 million term loan facility and for general
corporate purposes. Borrowings under the revolving credit
facility will be used for working capital and other general
corporate purposes. Quarterly principal payments under the new term
loan facility are required to be made in the amount of 1.25% of the
original principal amount, with the unpaid principal balance of
approximately $191.0 million due on
the Maturity Date.
"We are pleased with the execution of this transaction and the
continued evidence of strong support from the financial
institutions in our credit facilities," stated Theresa E. Wagler, Chief Financial Officer. "The
new facilities further enhance the strength and flexibility of our
capital structure to maintain not only our current operations, but
to promote growth."
Merrill Lynch, Pierce, Fenner & Smith Incorporated, PNC
Capital Markets LLC and Wells Fargo Securities, LLC served as Joint
Lead Arrangers and Joint Bookrunners.
About Steel Dynamics, Inc.
Steel Dynamics, Inc. 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 annual sales of $7.4 billion in 2013, over 7,400 employees, and
manufacturing facilities primarily located throughout the United States (including six steel mills,
six steel processing facilities, two iron production facilities,
over 90 metals recycling locations and six steel fabrication
plants).
Forward-Looking Statement
This press release contains certain predictive statements that
are "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements
included in this press release that address activities, events or
developments that the Company expects, believes or anticipates will
or may occur in the future are forward-looking statements.
These statements are based on the Company's current expectations
and projections about future events and involve known and unknown
risks, uncertainties, and other factors that may cause the
Company's actual results and performance to be materially different
from any future results or performance expressed or implied by
these forward-looking statements.
More specifically, we refer you to the Company's 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, 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 Web site, www.sec.gov.
Forward-looking or predictive statements we make are based upon
information and assumptions, concerning our businesses and the
environments in which they operate, which we consider reasonable as
of the date on which these statements are made. Due to the
foregoing risks and uncertainties however, as well as, matters
beyond our control which can affect forward-looking statements, you
are cautioned not to place undue reliance on these predictive
statements, which speak only as of the date of this press release.
We undertake no duty to update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise.
SOURCE Steel Dynamics, Inc.