Steel Dynamics Adds Term Loan A Facility
09/12/2007 - Steel Dynamics amends its existing $750-million senior secured credit facility to allow for the addition of a $550-million term loan A facility.
Steel Dynamics, Inc. has amended its existing $750-million senior secured credit facility to allow for the addition of a $550-million term loan A facility. This new facility was also consummated on Tuesday (Sep. 11).
The company says it will use net proceeds from the Term Loan A to repay a portion of the borrowings outstanding under the $750-million senior secured revolving credit facility, which were used to fund the company's recent $370-million purchase of The Techs, to fund additional share repurchases pursuant to the company's share repurchase program, to fund various capital expenditures, and for general working-capital purposes.
The combined facilities, which are due June 2012, are secured by substantially all the company's wholly-owned subsidiaries' receivables and inventories and by pledges of all shares of the company's wholly-owned subsidiaries' capital stock.
The senior secured credit facility contains financial covenants and other covenants that limit or restrict the company's ability to make capital expenditures; incur indebtedness; permit liens on property; enter into transactions with affiliates; make restricted payments or investments; enter into mergers, acquisitions or consolidations; conduct asset sales; pay dividends or distributions; and enter into other specified transactions and activities. The company's ability to borrow funds under the combined facilities is dependent on its continued compliance with the financial covenants and other covenants contained in the senior secured credit agreement, as amended and restated.
