Steel Dynamics (STLD) Closes Notes Offering Worth $400M
Zacks Investment Research | Dec 08, 2016 09:33PM ET
Steel Dynamics, Inc. (NASDAQ:STLD) has completed the sale of $400 million aggregate principal amount of its 5.000% Senior Notes due 2026. The notes were sold in a private offering to qualified institutional buyers.
Steel Dynamics will be utilizing the proceeds from the sale, along with other cash in hand, to purchase either a part or all of the outstanding $400 million principal amount of its 6.125% Senior Notes due 2019, as per the company’s previous announcement of the cash tender offer. The company will also redeem or repurchase any 2019 Notes not purchased in the Tender Offer, as stated in the indenture governing the Notes along with bearing related fees and expenses.
The issuance of the new notes and the retirement of the 2019 notes will help Steel Dynamics to increase its debt maturity profile. Moreover, the company’s interest expenses will also decrease post the completion of these actions.
Shares of Steel Dynamics rose roughly 1.9% to $38.86 on Dec 6.
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