Steel Dynamics, Inc. announced that it has amended, restated and expanded its senior secured revolving credit facility and entered into a new term loan facility. The company has expanded its senior secured revolving credit facility from the prior $1.1 billion level to a renewed five year $1.2 billion facility and also entered into a new five year $250.0 million term loan facility, both of which mature on November 14, 2019.
Merrill Lynch, Pierce, Fenner & Smith Incorporated, PNC Capital Markets LLC and Wells Fargo Securities, LLC served as joint lead arrangers and joint bookrunners.
Subject to certain conditions, the company also has the ability to increase the combined facility size by a minimum of $750 million. The facilities are guaranteed by certain Steel Dynamics subsidiaries and are secured by substantially all of the company's accounts receivable and inventories. The proceeds from the new term loan facility will be used to refinance the company's existing $226.9 million term loan facility and for general corporate purposes. Borrowings under the revolving credit facility will be used for working capital and other general corporate purposes. Quarterly principal payments under the new term loan facility are required to be made in the amount of 1.25% of the original principal amount, with the unpaid principal balance of approximately $191.0 million due on the maturity date.
"We are pleased with the execution of this transaction and the continued evidence of strong support from the financial institutions in our credit facilities," stated Theresa E. Wagler, Chief Financial Officer. "The new facilities further enhance the strength and flexibility of our capital structure to maintain not only our current operations, but to promote growth."
Steel Dynamics, Inc. is one of the largest domestic steel producers and metals recyclers in the United States based on estimated annual steelmaking and metals recycling capability, with annual sales of $7.4 billion in 2013, over 7,400 employees, and manufacturing facilities primarily located throughout the United States (including six steel mills, six steel processing facilities, two iron production facilities, over 90 metals recycling locations and six steel fabrication plants).