By Ronda Fears
Nashville, Dec. 17 - Steel Dynamics Inc. sold $100 million of 10-year convertible subordinated notes at par to yield 4.0% with a 41% initial conversion premium.
The drive-by Rule 144A deal, via joint lead managers Morgan Stanley (books) and Goldman Sachs & Co., priced cheaper than yield talk that put the coupon between 3.25% and 3.75%. It came at the richer end of premium talk which had a range of 37.5% to 42.5%.
Steel Dynamics said it will use $125 million of proceeds to repay outstanding debt under its credit facility and any remaining proceeds for general corporate purposes.
Terms of the new deal are:
| Issuer: | Steel Dynamics Inc.
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| Amount: | $100 million
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| Greenshoe: | $25 million
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| Lead managers: | Morgan Stanley (books) and Goldman Sachs
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| Maturity date: | December 2012
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| Coupon: | 4.0%
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| Issue price: | par
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| Yield: | | 4.0%
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| Conversion premium: | 41%
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| Conversion price: | $17
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| Conversion ratio: | 58.8076
|
| Call: | Non-callable for five years
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| Put: | In year 7, in cash only
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| Contingent conversion: | 120% trigger, or if ratings fall below CCC/Caa3
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| Contingent payment: | 120% trigger
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| Settlement date: | Dec. 23
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