Steel Dynamics replaced its $230 million revolver with a five-year, $350 million senior secured revolver that will give the company flexibility, said Gary Heasley, v.p. and cfo. "[Steel Dynamics] has plans to grow the company over time," he explained. "We wanted to make sure there is a facility in place that will allow us to grow and this facility gives us that flexibility." The company's growth plans could include new projects or acquisitions. "We look at all avenues of growth and any of those could require a larger facility," he said.
Morgan Stanley and Bank of America lead the deal, which allows the company to increase the facility by an additional $100 million during the next five years. At it lowest, the revolver is priced at LIBOR plus 50 basis points. Morgan Stanley led the $230 million revolver, with B of A participating in the syndicate. "We added Bank of America to the team because they showed a lot of skill and gave us a lot of good advice," said Heasley.
Based in Fort Wayne, Ind., Steel Dynamics operates three steel mini-mills and steel-processing operations, which produce a variety of flat-rolled, structural and bar steels. It also has $300 million 9 1/2% bond issuance outstanding, and a $115 million convertible note.