Steel Dynamics to price $150 million five-year convertibles at 5.125%-5.625%, up 22.5%-27.5%

By Rebecca Melvin

New York, June 2 - Steel Dynamics Inc. plans to price $150 million of five-year convertibles after the close of markets Wednesday to yield 5.125% to 5.625% with an initial conversion premium of 22.5% to 27.5%.

Steel Dynamics also plans to price 27 million shares of common stock.

Merrill Lynch, Goldman Sachs & Co., Morgan Stanley & Co. Inc. and J.P. Morgan Securities Inc. are serving as joint bookrunners for both registered offerings.

ABN Amro Inc. and PNC Capital Markets LLC are serving as co-managers for the convertible senior notes offering.

BMO Capital Markets, PNC Capital Markets LLC and Wachovia Securities LLC are serving as co-managers for the common stock offering.

The notes, which have a $22.5 million, or 15%, greenshoe, are non-callable for three years and are provisionally callable thereafter at a price hurdle of 130%.

Proceeds will be used to repay term loan borrowings under a senior secured credit facility.

Fort Wayne, Ind.-based Steel Dynamics is a maker of steel products. The company has a market capitalization of $2.84 billion.

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