NORTH AMERICA HEADLINESNorth America
Steel Dynamics Announces Offerings of Stock, Notes
Jun. 3, 2009 Steel Dynamics, Inc. announced its intention to offer 27 million shares of common stock and $150 million of convertible senior notes due 2014. The company said the convertible senior notes would be guaranteed by certain of its subsidiaries.
Underwriters in the offerings will have a 30-day option to purchase up to an additional 15% of the offered amount of common stock and convertible senior notes to cover over-allotments, if any. The company said that neither offering would be contingent on completion of the other offering.
Steel Dynamics said that it intends to use net proceeds from the offerings to repay term loan borrowings under its existing senior secured credit facility.
Merrill Lynch & Co., Goldman, Sachs & Co., Morgan Stanley and J.P. Morgan are serving as joint book-running managers for both offerings. BMO Capital Markets, PNC Capital Markets LLC and Wachovia Securities are serving as co-managers for the common stock offering. ABN AMRO Inc. and PNC Capital Markets LLC are serving as co-managers for the convertible senior notes offering.
The company also announced a quarterly cash dividend of $0.075 per common share, representing a 25% reduction.