Steel Dynamics Inc. (STLD: Quote) announced that it has expanded its senior secured credit facility by adding a $275.0 million term loan facility to its existing five year $1.1 billion revolving credit facility. The new five year term loan matures September 30, 2016 and is guaranteed by certain of the Company's subsidiaries and is secured by substantially all of the Company's and said subsidiaries' accounts receivable and inventories.
Quarterly principal payments under the Term Loan are required to be made in amounts ranging from 1.25% to 3.75% of the original principal amount, with the unpaid principal balance of approximately $158 million due on the Maturity Date.
The Company said that it intends to use the proceeds of the term loan, together with cash on hand, to fund the purchase of $278.47 million of the Company's 7 3/8% Senior Notes due 2012 in accordance with the Company's recently announced cash tender offer for the 2012 Notes.
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by RTT Staff Writer
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