Daily News: November 17, 2014

Merrill Lynch, Others Arrange Steel Dynamics Facilities

Steel Dynamics announced it amended, restated and expanded its senior secured revolving credit facility and entered into a new term loan facility. The company expanded its senior secured revolving credit facility from the prior $1.1 billion level to a renewed five year $1.2 billion facility and also entered into a new five year $250.0 million term loan facility, both of which mature on November 14, 2019 (the Maturity Date).

Merrill Lynch, Pierce, Fenner & Smith, PNC Capital Markets and Wells Fargo Securities served as joint lead arrangers and joint bookrunners.

The company also has the ability to increase the combined facility size by a minimum of $750 million. The facilities are guaranteed by certain Steel Dynamics subsidiaries and are secured by substantially all of the Company’s accounts receivable and inventories. The proceeds from the new term loan facility will be used to refinance the company’s existing $226.9 million term loan facility and for general corporate purposes. Borrowings under the revolving credit facility will be used for working capital and other general corporate purposes. Quarterly principal payments under the new term loan facility are required to be made in the amount of 1.25% of the original principal amount, with the unpaid principal balance of approximately $191.0 million due on the maturity date.

“We are pleased with the execution of this transaction and the continued evidence of strong support from the financial institutions in our credit facilities,” stated Theresa E. Wagler, CFO. “The new facilities further enhance the strength and flexibility of our capital structure to maintain not only our current operations, but to promote growth.”

Steel Dynamics is a domestic steel producer and metals recycler in the U.S.