#United States #Fort Wayne #Financial Strategy #Steel Dynamics #Notes Offering

Steel Dynamics Successfully Finalizes Notes Offering and Announces Redemption

Steel Dynamics, Inc. has recently announced the successful completion of its substantial notes offering, totaling $650 million in aggregate principal amount of 4.000% Notes that are set to mature in 2028. In conjunction with this offering, the company has also reopened and finalized the sale of an additional $150 million of its 5.250% Notes due in 2035. This new issuance was made at a price of 101.443% of their principal amount, resulting in an implied yield of 5.053%.

The additional 2035 notes will consolidate with the previously issued $600 million 5.250% Notes, which were issued on March 12, 2025. The company intends to utilize the proceeds from these note offerings to redeem its existing 5.000% Notes that are due in 2026, amounting to $400 million, as well as for general corporate purposes.

Theresa E. Wagler, Executive Vice President and CFO of Steel Dynamics, expressed satisfaction with the response to this investment-grade note offering. She stated, "This transaction furthers our near-term flexibility and enhances 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."

In addition to the notes offering, Steel Dynamics has called for the redemption of the 2026 Notes, with the redemption date set for December 21, 2025. According to the company, the redemption price for these notes will be 100% of the principal amount, plus any accrued and unpaid interest up to the redemption date. From the redemption date onwards, the 2026 Notes will no longer be considered outstanding, and interest payments will cease. All remaining rights of holders of the 2026 Notes will only entitle them to receive the redemption price without any additional interest. Registered holders of the 2026 Notes received a formal notice regarding this redemption on November 21, 2025.

As part of the company's growth strategy, it has plans to surrender the 2026 Notes to Computershare Trust Company, N.A., which will act as the trustee and paying agent for this transaction. This strategic decision demonstrates Steel Dynamics' commitment to optimizing its financial position and operational flexibility.

Furthermore, Steel Dynamics is recognized as a leading industrial metals solutions provider, with operations stretching across the United States and Mexico. The company's operational model emphasizes sustainability by utilizing a circular manufacturing approach that focuses on producing lower carbon-emission products, primarily using recycled scrap as the main input. Steel Dynamics stands as one of North America's largest steel producers and metal recyclers while also pursuing growth in aluminum operations to diversify its product offerings. This includes plans to supply aluminum products to the sustainable beverage can industry.

It’s important to note that while optimism surrounds this offering, Steel Dynamics acknowledges the inherent risks and uncertainties in making predictions about future market conditions and company performance. This includes potential economic fluctuations, supply chain disruptions, and other external factors that could influence operations and profitability.

In conclusion, Steel Dynamics' recent notes offering and the subsequent redemption of their 2026 Notes mark a significant step towards strengthening their financial structure and enhancing their operational flexibility. As the company continues to navigate the evolving landscape of the industrial metals sector, their commitment to sustainable practices and long-term growth remains unwavering. Through strategic financial maneuvers, Steel Dynamics aims to create lasting value for its teams, customers, and shareholders alike.