Steel Dynamics gets $1 billion bridge loan commitment for acquisition

By Sara Rosenberg

New York, July 21 – Steel Dynamics Inc. has received a commitment for a $1 billion bridge loan to back its purchase of Severstal Columbus LLC, a technologically advanced mini-mill in Mississippi, from OAO Severstal, company officials said in a conference call on Monday.

Goldman Sachs is leading the debt.

Permanent financing for the transaction is expected to include a combination of available cash on hand and new debt, which will allow the company to maintain its current credit rating.

The purchase price for Severstal Columbus is $1,625,000,000 in cash, subject to customary transaction purchase price adjustments.

Closing is expected by year-end, conditioned on receipt of regulatory approvals and customary conditions.

At closing, leverage is expected at the 3.5 times or less range, officials added in the call.

Steel Dynamics is a Fort Wayne, Ind.-based steel producer and metals recycler.

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