Steel Dynamics Prices Public Stock, Note Offerings

FORT WAYNE, Ind. (AP) — Steel Dynamics Inc. said Monday it has priced its public stock and note offerings.

The steel producer said it will sell 27 million shares of common stock at $13.50 per share. That's an 8.6 percent discount to the stock's closing prices of $14.77 on Friday.

The company has also given underwriters a 30-day option to buy up nearly 4.1 million additional shares to cover any overallotments.

Steel Dynamics also plans to offer $250 million in 5.125 percent convertible senior notes due 2014. It granted underwriters the option to buy up to an extra $37.5 million in notes.

The notes will be convertible into shares at an initial conversion rate of 56.9801 shares of common stock per $1,000 principal amount of convertible senior notes, or about $17.55 per share.

The company intends to use proceeds from the offerings to repay the term loan portion of its existing senior secured credit facility in full. The remaining proceeds from the offerings will be used for general corporate purposes.

Shares of Steel Dynamics fell 65 cents, or 4.4 percent, to $14.12 in midday trading.