Merrill Lynch, Others Provide Term Loan to Steel Dynamics
Steel Dynamics, Inc. announced that it has expanded its senior secured credit facility by adding a $275 million term loan facility to its existing five-year $1.1 billion revolving credit facility.
Merrill Lynch, PNC Capital Markets and Wells Fargo Securities served as joint and exclusive bookrunners and lead arrangers.
The new five-year term loan matures September 30, 2016 and is guaranteed by certain of the company’s subsidiaries and is secured by substantially all of the company’s and said subsidiaries’ accounts receivable and inventories. Quarterly principal payments under the term loan are required to be made in amounts ranging from 1.25% to 3.75% of the original principal amount, with the unpaid principal balance of approximately $158 million due on the maturity date. The company intends to use the proceeds of the term loan, together with cash on hand, to fund the purchase of $278.47 million of the company’s 7 3/8% senior notes due 2012 in accordance with the company’s recently announced cash tender offer for the 2012 notes.
Steel Dynamics is a diversified, entrepreneurial carbon-steel producer and metals recycler.