FORT WAYNE, Ind., Oct. 9, 2020 /PRNewswire/ -- Steel Dynamics, Inc.
(NASDAQ/GS: STLD) announced today that it has consummated the sale
of $350 million aggregate principal
amount of 1.650% Notes due 2027 ("2027 Notes") and $400 million aggregate principal amount of 3.250%
Notes due 2050 (together with the 2027 Notes, the "Notes"). The net
proceeds from the Notes will be used to redeem $350 million of the company's 4.125% Senior Notes
due 2025 ("2025 Notes") and for other general corporate
purposes.
"We are incredibly pleased with the execution and support for
our third investment grade note offering," stated Theresa E. Wagler, Executive Vice President and
Chief Financial Officer. "These transactions are an integral part
of our long-term strategy to provide a strong capital foundation in
support of our teams, our customers, and our continued growth.
Since attaining our investment grade rating designation in
October 2019, we have refinanced
nearly all of our legacy high yield notes, meaningfully extending
our average debt maturity profile and significantly decreasing our
annual interest costs. We remain committed to maintaining our
investment grade credit ratings, which we believe provide avenues
to lower-cost and longer-term capital, allowing long-term
optionality and value creation opportunities."
Additionally, the company announced today that it has called for
redemption $350 million of the 2025
Notes. The redemption date for the 2025 Notes will be
November 8, 2020. The redemption
price for the 2025 Notes will be at 102.063%, plus accrued and
unpaid interest to, but not including, the redemption date. On and
after the redemption date, the 2025 Notes will no longer be deemed
outstanding, interest will cease to accrue thereon and all rights
of any remaining holders of 2025 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 13, 2017, as supplemented and amended,
governing the 2025 Notes, was sent to registered holders of the
2025 Notes on October 9, 2020. The
2025 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 a guarantee 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) the effects of
pandemics or other health issues, such as the recent novel
coronavirus outbreak (COVID-19); (3) cyclical and changing
industrial demand; (4) 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,
energy, and other steel-consuming industries; (5) 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; (6) the impact of domestic
and foreign imports, including trade policy, restrictions, or
agreements; (7) unanticipated difficulties in integrating or
starting up new, acquired or planned businesses or assets; (8)
risks and uncertainties involving product and/or technology
development; and (9) 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
Securities and Exchange Commission website, www.sec.gov, and
on the Steel Dynamics website, www.steeldynamics.com under
"Investors — SEC Filings".
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SOURCE Steel Dynamics, Inc.