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Steel Dynamics Underwriters Exercise Over-Allotment Options
06/19/2009 - Underwriters of Steel Dynamics’ announced offerings of notes and stocks have exercised their full overallotment options.
Underwriters of Steel Dynamics’ announced offerings of notes and stocks have exercised their full overallotment options.
To cover overallotments for the notes and stock offerings, underwriters had been given a 30-day option to purchase up to an additional $37,500,000 principal amount of 5.125% convertible senior notes due 2014 and an additional 4,050,000 shares of its common stock, corresponding to 15% of the offered amount of notes and stock.
Exercise of the over-allotment options results in the issuance for these offerings, in the aggregate, of $287,500,000 aggregate principal amount of 5.125% convertible senior notes due 2014 and 31,050,000 shares of common stock. Closings for the exercise of the over-allotment options were on June 18, 2009.
The company said that it intends to use net proceeds from the offerings to repay the term-loan portion of its existing senior secured credit facility in full, with any remaining proceeds going to general corporate purposes.
Merrill Lynch & Co., Goldman, Sachs & Co., Morgan Stanley & Co. Inc., and J.P. Morgan Securities Inc. served 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 served as co-managers for the common stock offering. ABN AMRO Inc. and PNC Capital Markets LLC served as co-managers for the convertible senior notes offering.
