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Steel Dynamics Announces New Term Loan Facility
01/12/2012 - Steel Dynamics, Inc. has expanded its senior secured credit facility by adding a $275.0 million term loan facility to its existing five-year $1.1 billion revolving credit facility.
Steel Dynamics, Inc. has expanded its senior secured credit facility by adding a $275.0 million term loan facility to its existing five-year $1.1 billion revolving credit facility.
The new five-year term loan, which matures September 30, 2016, is guaranteed by certain of the company's subsidiaries and secured by substantially all of the company's and said subsidiaries' accounts receivable and inventories. Quarterly principal payments under the Term Loan are required to be made in amounts ranging from 1.25% to 3.75% of the original principal amount, with the unpaid principal balance of approximately $158 million due on the Maturity Date.
The company said that it intends to use proceeds of the term loan, together with cash on hand, to fund the purchase of $278,470,000 of the company's 7 3/8% Senior Notes due 2012 in accordance with the company's recently announced cash tender offer for the 2012 Notes.
Merrill Lynch, Pierce, Fenner & Smith Inc., PNC Capital Markets LLC and Wells Fargo Securities, LLC served as joint and exclusive bookrunners and lead arrangers.
