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Steel Dynamics Announces Pricing of Stock, Notes
06/09/2009 - Steel Dynamics has priced its public offerings of common stock and 5.125% convertible senior notes due 2014.
Steel Dynamics, Inc. has priced its public offerings of common stock and 5.125% convertible senior notes due 2014.
The company will sell 27 million shares of its common stock at a public offering price of $13.50 per share. Underwriters have been granted a 30-day option to purchase up to an additional 4,050,000 shares of common stock on the same terms and conditions to cover over-allotments, if any.
The company will also offer $250 million of 5.125% convertible senior notes due 2014. Underwriters have been granted a 30-day option to purchase up to an additional $37,500,000 principal amount of convertible senior notes to cover over-allotments, if any.
The convertible senior notes will pay interest semi-annually at a rate of 5.125% and will mature on June 15, 2014, unless earlier repurchased or converted. The convertible senior notes will be convertible at the holder's option into company shares at an initial conversion rate of 56.9801 shares of common stock per $1,000 principal amount of convertible senior notes, equivalent to a conversion price of approximately $17.55 per share of common stock. The convertible senior notes are guaranteed by certain subsidiaries of the Company.
Steel Dynamics said it intends to use net proceeds from the offerings to repay the term loan portion of its existing senior secured credit facility in full. Any remaining proceeds will be used for general corporate purposes.
Merrill Lynch & Co., Goldman, Sachs & Co., Morgan Stanley & Co. Inc. and J.P. Morgan Securities Inc. are serving as joint book-running managers for both the common stock and the convertible senior notes offerings. BMO Capital Markets, PNC Capital Markets LLC and Wachovia Securities are serving as co-managers for the common stock offering. ABN AMRO Inc. and PNC Capital Markets LLC are serving as co-managers for the convertible senior notes offering.
