Steel Dynamics closed a $650 million issuance of 4.000% senior unsecured notes due 2028 and a $150 million issuance of 5.250% senior unsecured notes due 2035, bringing total new debt to $800 million. The company will use the proceeds to redeem $400 million of its 5.000% notes due 2026, reducing short‑term debt and extending its maturity profile. Net proceeds from the transaction are approximately $792 million after accounting for issuance costs.
The 5.250% notes were priced at 101.443 % of principal, implying an effective yield of 5.053 %. The 2026 notes were redeemed on December 21, 2025, with payment made on December 22, 2025. The pricing and redemption schedule reflect the company’s strategy to lock in favorable rates while aligning debt maturities with long‑term capital needs.
By issuing lower‑coupon, longer‑term debt, Steel Dynamics replaces higher‑cost, shorter‑term obligations, improving cash‑flow flexibility and supporting future growth initiatives. The move also helps maintain the company’s investment‑grade credit rating, which is critical for accessing capital markets at attractive rates.
Steel Dynamics reported Q3 2025 earnings per diluted share of $2.74, adjusted EBITDA of $664 million, and revenue of $4.8 billion. The debt‑to‑equity ratio stands at 0.42 and the Altman Z‑Score is 5.12, indicating strong financial stability. Segment performance shows robust activity across steel operations, metals recycling, steel fabrication, and aluminum operations, with record steel shipments driving revenue growth. Compared to Q2 2025, net income rose from $299 million to $318 million in Q3 2024, underscoring the company’s upward trajectory.
Theresa E. Wagler, Executive Vice President and Chief Financial Officer, said the transaction “furthers our near‑term flexibility and enhances our long‑term strategy to provide a strong capital foundation.” CEO Mark D. Millett highlighted the Q3 performance, noting record steel shipments and ongoing growth initiatives, reinforcing the company’s confidence in its strategic direction.
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