Fort Wayne, Indiana, February 26, 2002—Steel Dynamics, Inc.
(NASDAQ: STLD) (the “Company”), launched syndication last week of a new
$350 million senior secured credit facility (the “Credit Facility”)
and today announced that it is proposing to offer in March by way of a
private placement a new issue of $200 million of senior notes due 2009
(the “Notes”).
The Company intends to use the net proceeds from the offering and the
Credit Facility to repay borrowings under existing credit facilities
and for general corporate purposes.
This press release shall not constitute an offer to sell nor a solicitation of an offer to buy any of the Notes.
The Notes will be offered to qualified institutional buyers under
Rule 144A and to persons outside of the United States under Regulation
S. The Notes have not been registered under the Securities Act of 1933,
as amended (the “Securities Act”), and may not be offered or sold in
the United States, absent registration or an applicable exemption from
the Securities Act registration requirements and applicable state
securities laws.
Steel Dynamics is one of the most profitable steel producers in the
United States in terms of operating profit per ton. The Company
primarily owns and operates a state-of-the-art, low-cost flat-rolled
mini”‘mill located in Butler, Indiana. The Butler mini-mill began
commercial production in January 1996 and was constructed in only 14
months, representing what the Company believes is the shortest
construction period ever for a facility of this kind. The mini-mill
currently has an annual production capacity of 2.2 million tons. The
total capital cost of the Butler mini-mill was $630.0 million, which the
Company believes is significantly less than the cost of comparable
mini-mills currently operating. The Butler mini-mill produces a broad
range of high quality hot rolled, cold-rolled and coated steel products,
including a large variety of high-value added and high-margin specialty
products such as thinner gauge rolled products and galvanized products.
The Company sells its products directly to end-users and steel service
centers primarily in the Midwestern United States. The products are
used in numerous sectors, including the automotive, construction and
commercial industries. |