Steel Dynamics Announces Completion of Notes Offering

Rhea-AI Summary

Steel Dynamics (NASDAQ: STLD) has successfully completed a significant notes offering, consisting of $600 million of 5.250% Notes due 2035 and $400 million of 5.750% Notes due 2055. The proceeds will be allocated to general corporate purposes, including the potential repayment of the company's $400 million 2.400% Senior Notes maturing in June 2025.

The company's CFO, Theresa E. Wagler, emphasized that this investment-grade note offering aligns with their long-term strategy to maintain a robust capital foundation. The transaction reinforces their commitment to maintaining investment grade credit ratings, which they believe will provide access to lower-cost, longer-term capital and enhance financial flexibility for future value creation opportunities.

Positive

• Successful completion of $1 billion notes offering demonstrates strong market confidence
• Investment grade rating helps secure lower-cost, longer-term capital
• Strategic refinancing opportunity for $400M notes due June 2025
• Enhanced financial flexibility for future growth opportunities

Negative

• Increased long-term debt obligations with higher interest rates (5.250% and 5.750%) compared to existing 2.400% notes

FORT WAYNE, Ind., March 12, 2025 /PRNewswire/ -- Steel Dynamics, Inc. (NASDAQ/GS: STLD) announced today that it has consummated the sale of $600 million aggregate principal amount of 5.250% Notes due 2035 (the "2035 Notes") and $400 million aggregate principal amount of 5.750% Notes due 2055 (together with the 2035 Notes, the "Notes"). The net proceeds from the Notes will be used for general corporate purposes, which may include repayment of the company's $400 million 2.400% Senior Notes due June 2025.

"We are very pleased with the execution and support for our investment grade note offering," stated Theresa E. Wagler, Executive Vice President and Chief Financial Officer. "This transaction furthers our long-term strategy to provide a strong capital foundation in support of our teams, customers, shareholders, and our continued growth. We remain committed to maintaining our investment grade credit ratings, which we believe provide lower-cost and longer-term capital, enhancing our financial strength and enabling optionality for value creation opportunities."

This announcement is neither an offer to sell nor a solicitation of an offer to buy the Notes or any other securities, and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, PNC Capital Markets LLC, BofA Securities, Inc., Wells Fargo Securities, LLC, and Truist Securities, Inc. are acting as joint book-running managers for the offering of the Notes.

About Steel Dynamics, Inc.
Steel Dynamics is one of the largest domestic steel producers and metals recyclers in North America, based on estimated annual steelmaking and metals recycling capability, with facilities located throughout the United States, and in Mexico. Steel Dynamics produces steel products, including hot roll, cold roll, and coated sheet steel, structural steel beams and shapes, rail, engineered special-bar-quality steel, cold finished steel, merchant bar products, specialty steel sections, and steel joists and deck. In addition, the company produces liquid pig iron and processes and sells ferrous and nonferrous scrap.

Forward-Looking Statements
This press release contains some predictive statements about future events, including statements related to conditions in domestic or global economies, conditions in steel, aluminum, and recycled metals market places, Steel Dynamics' revenues, costs of purchased materials, future profitability and earnings, and the operation of new, existing or planned facilities. These statements, which we generally precede or accompany by such typical conditional words as "anticipate", "intend", "believe", "estimate", "plan", "seek", "project", or "expect", or by the words "may", "will", or "should", are intended to be made as "forward-looking", subject to many risks and uncertainties, within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These statements speak only as of this date and are based upon information and assumptions, which we consider reasonable as of this date, concerning our businesses and the environments in which they operate. Such predictive statements are not guarantees of future performance, and we undertake no duty to update or revise any such statements. Some factors that could cause such forward-looking statements to turn out differently than anticipated include: (1) domestic and global economic factors; (2) global steelmaking overcapacity and imports of steel, together with increased scrap prices; (3) pandemics, epidemics, widespread illness or other health issues; (4) the cyclical nature of the steel industry and the industries we serve; (5) volatility and major fluctuations in prices and availability of scrap metal, scrap substitutes and supplies, and our potential inability to pass higher costs on to our customers; (6) cost and availability of electricity, natural gas, oil, and other energy resources are subject to volatile market conditions; (7) increased environmental, greenhouse gas emissions and sustainability considerations from our customers and investors or related regulations; (8) compliance with and changes in environmental and remediation requirements; (9) significant price and other forms of competition from other steel and aluminum producers, scrap processors and alternative materials; (10) availability of an adequate source of supply of scrap for our metals recycling operations; (11) cybersecurity threats and risks to the security of our sensitive data and information technology; (12) the implementation of our growth strategy; (13) our ability to retain, develop, and attract key personnel; (14) litigation and legal compliance; (15) unexpected equipment downtime or shutdowns; (16) governmental agencies may refuse to grant or renew some of our licenses and permits; (17) our senior unsecured credit facility contains, and any future financing agreements may contain, restrictive covenants that may limit our flexibility; and (18) the impacts of impairment charges.

More specifically, we refer you to our more detailed explanation of these and other factors and risks that may cause such predictive statements to turn out differently, as set forth in our most recent Annual Report on Form 10-K under the headings Special Note Regarding Forward-Looking Statements and Risk Factors, in our Quarterly Reports on Form 10-Q, or in other reports which we file with the Securities and Exchange Commission. These reports are available publicly on the Securities and Exchange Commission website, www.sec.gov, and on our website, www.steeldynamics.com under "Investors – SEC Filings."

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SOURCE Steel Dynamics, Inc.

FAQ

What is the total value of Steel Dynamics' (STLD) new notes offering in 2025?

Steel Dynamics' notes offering totals $1 billion, comprising $600 million in 2035 Notes and $400 million in 2055 Notes.

What are the interest rates for STLD's 2035 and 2055 Notes?

The 2035 Notes carry a 5.250% interest rate, while the 2055 Notes have a 5.750% interest rate.

How will Steel Dynamics use the proceeds from its 2025 notes offering?

The proceeds will be used for general corporate purposes, potentially including repayment of $400 million 2.400% Senior Notes due June 2025.

Which financial institutions are managing STLD's 2025 notes offering?

J.P. Morgan Securities, Morgan Stanley, Goldman Sachs, PNC Capital Markets, BofA Securities, Wells Fargo Securities, and Truist Securities are joint book-running managers.