Steel Dynamics lifts revolver to $1.2 billion, inks new term loan

By Toni Weeks

San Luis Obispo, Calif., Nov. 14 – Steel Dynamics, Inc. amended its senior secured revolving credit facility, lifting the total amount to $1.2 billion from $1.1 billion, and also entered into a new $250 million term loan facility.

Both facilities mature on Nov. 14, 2019. Subject to some conditions, the company may increase the combined facility by a minimum of $750 million.

According to a press release, the term loan agreement requires the company to make quarterly principal payments of 1.25% of the original principal amount, with the unpaid principal balance of roughly $191 million due at maturity.

Proceeds from the term loan will be used to refinance the company’s existing $226.9 million term loan facility and for general corporate purposes. Borrowings under the revolver will be used for working capital and other general corporate purposes.

Bank of America Merrill Lynch, PNC Capital markets LLC and Wells Fargo Securities, LLC were the joint lead arrangers and joint bookrunners.

The facilities are guaranteed by some Steel Dynamics subsidiaries and are secured by substantially all of the company’s accounts receivable and inventories.

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

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