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FORT WAYNE, Ind. - Steel Dynamics, Inc. (NASDAQ:STLD) announced Friday it has completed the sale of $800 million in notes, comprising $650 million of 4.000% Notes due 2028 and an additional $150 million of 5.250% Notes due 2035. The steel producer, currently valued at $23.09 billion, has seen its shares climb 35.77% year-to-date.
The company plans to use the proceeds to redeem its $400 million 5.000% Notes due 2026 and for general corporate purposes. The additional 2035 Notes were issued at a price of 101.443% of their principal amount, with an implied yield of 5.053%, and will be consolidated with the company’s outstanding $600 million 5.250% Notes due 2035 issued in March.
The redemption of the 2026 Notes is scheduled for December 21, 2025, at 100.000% of principal plus accrued interest.
"This transaction furthers our near-term flexibility and enhances our long-term strategy to provide a strong capital foundation," said Theresa E. Wagler, Executive Vice President and Chief Financial Officer, in the press release statement. The company’s financial discipline is reflected in its healthy debt-to-equity ratio of 0.42 and impressive Altman Z-Score of 5.12, indicating strong financial stability.
The notes offering was managed by several financial institutions, with J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BofA Securities, Inc., Wells Fargo Securities, LLC, Goldman Sachs & Co. LLC, and PNC Capital Markets LLC acting as joint book-running managers.
Steel Dynamics describes itself as a leading industrial metals solutions company with operations throughout the United States and Mexico. The company operates using a circular manufacturing model with recycled scrap as the primary input and is among the largest domestic steel producers and metal recyclers in North America. With annual revenue of $17.63 billion, the company maintains a solid dividend track record, having raised its dividend for 13 consecutive years and maintained payments for 22 years straight.InvestingPro analysis suggests Steel Dynamics is slightly undervalued based on its Fair Value calculation. For deeper insights into STLD and access to its comprehensive Pro Research Report, investors can explore InvestingPro, which offers detailed analysis on over 1,400 US equities.
In other recent news, Steel Dynamics, Inc. received a ’BBB+’ rating from Fitch Ratings for its new senior unsecured notes. The proceeds from these notes are intended for refinancing near-term maturities and general corporate purposes. Fitch’s rating reflects an expectation that Steel Dynamics will maintain EBITDA leverage below 1.8x and EBITDA margins at or above 14%. Additionally, Steel Dynamics announced the appointment of Matt Bell as Vice President of Metals Recycling and President of OmniSource. Bell has been with the company since 2016 and was previously Vice President of Commercial for OmniSource. On the analyst front, KeyBanc raised its price target for Steel Dynamics to $165 from $152, maintaining an Overweight rating. Meanwhile, BMO Capital increased its price target to $167 from $155, continuing with an Outperform rating. Both firms adjusted their estimates following Steel Dynamics’ third-quarter 2025 results, considering market conditions and seasonal factors.
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