Steel Dynamics greenshoe exercised; convertibles now $287.5 million

By Devika Patel

Knoxville, Tenn., June 18 - Underwriters for Steel Dynamics Inc.'s offering of 5.125% five-year convertible notes exercised their over-allotment option in full for $37.5 million more of the notes, increasing the size of the issue to $287.5 million, the company said.

As previously reported, the company sold the notes at par on June 3 in a registered offering via joint bookrunners Merrill Lynch, Goldman Sachs & Co., Morgan Stanley & Co. Inc. and J.P. Morgan Securities Inc.

The notes have an initial conversion premium of 30% and a conversion ratio of 56.9801, which equals a conversion price of $17.55.

The notes are non-callable for three years and are provisionally callable after that with a price hurdle of 130%.

Proceeds are earmarked to repay term loan borrowings under a senior secured credit facility.

Fort Wayne, Ind.-based Steel Dynamics is a maker of steel products.

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