Steel Dynamics secures $1.2 billion revolving facility due 2028

By Mary-Katherine Stinson

Lexington, Ky., July 21 – Steel Dynamics, Inc. on July 19 entered a new credit agreement, providing a revolving credit facility of $1.2 billion which matures on July 19, 2028, according to an 8-K filing with the Securities and Exchange Commission.

The facility may be increased by up to $500 million.

Borrowings will bear interest at SOFR plus a margin ranging from 100 to 175 basis points based on the company’s total net leverage ratio and the debt rating. The initial margin will be at 150 bps.

There are commitment fees ranging from 11 to 27.5 bps also based on the company’s total net leverage ratio and the debt rating. Initially, the commitment fee will be 25 bps.

PNC Bank, NA is the administrative agent.

BofA Securities, Inc., PNC Capital Markets LLC and Wells Fargo Securities, LLC are the joint lead arrangers and joint bookrunners.

Bank of America, NA, Wells Fargo Bank, NA and JPMorgan Chase Bank, NA are the syndication agents.

Morgan Stanley Senior Funding, Inc., BMO Harris Bank, NA, Citizens Bank, NA, Fifth Third Bank, NA and Truist Bank are the documentation agents.

The new credit facility will be available to fund working capital and other general corporate purposes.

It replaces the company’s previous credit agreement dated Dec. 3, 2019.

Steel Dynamics is a Fort Wayne, Ind.-based steel producer and metals recycler.

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