New Issue: Steel Dynamics prices upsized $350 million 10-year senior notes at par to yield 7 5/8%

By Paul A. Harris

St. Louis, March 11 - Steel Dynamics, Inc. priced an upsized $350 million issue of 10-year senior notes (Ba2/BB+/) at par to yield 7 5/8% on Thursday, according to an informed source.

The yield printed at the tight end of the 7¾% area price talk.

Bank of America Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities Inc. and Morgan Stanley & Co. Inc. were the joint bookrunners for the quick-to-market deal, which was upsized from $300 million.

Proceeds will be used to repay bank debt and for general corporate purposes.

The issuer is a Fort Wayne, Ind.-based steel manufacturer.

Issuer:	Steel Dynamics, Inc.
Amount:	$350 million, increased from $300 million
Maturity:	March 15, 2020
Securities:	Senior notes
Bookrunners:	Bank of America Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities Inc., Morgan Stanley & Co. Inc.
Coupon:	7 5/8%
Price:	Par
Yield:	7 5/8%
Spread:	390 bps
Call features:	Make-whole call at Treasuries plus 50 bps until April 1, 2014, the callable at 104.563, 102.281, par on and after April 1, 2016
Equity clawback:	35% at 109.125 through March 15, 2013
Trade date:	March 11
Settlement date:	March 22
Ratings:	Moody's: Ba2
	Standard & Poor's: BB+
Distribution:	Rule 144A with registration rights/Regulation S
Price talk:	7¾% area

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