Markets

Steel Dynamics Completes Sale of $350M Senior Notes Due 2025

Steel Dynamics, Inc.STLD announced the completion of the sale of $350 million total principal amount of its 4.125% Senior Notes due 2025. The move is aimed at reducing the company's interest expense and extend its debt maturity profile.

The senior notes were offered to persons outside the United States (under Regulation S) and qualified institutional buyers (under Rule 144A) in a private offering, which is exempted from registration requirements per the Securities Act of 1933.

According to Steel Dynamics, the company will use the net proceeds from this offering along with cash in hand to purchase all of its 6.375% senior notes due 2022 that are validly tendered. It will also repurchase, redeem or discharge any 2022 notes not purchased earlier and pay related fees and expenses.

Shares of Steel Dynamics have moved up 3% in the last three months, significantly underperforming the industry 's 21.5% rally.

Steel Dynamics reported net income of $154 million or 63 cents per share in second-quarter 2017, compared to net income of $142 million or 58 cents recorded a year ago. The figure missed the Zacks Consensus Estimate of 65 cents.

Net sales in the quarter increased 18.1% year over year to $2,390.7 million, beating the Zacks Consensus Estimate of $2,344 million.

Steel Dynamics, during second-quarter earnings, provided optimistic views on macroeconomic and market conditions, which is anticipated to benefit steel consumption in domestic market in the future. The company believes that demand in the North American automotive steel market will remain steady although automotive production in the United States has peaked. It is also expecting growth in construction and energy sectors, especially for infrastructure projects in the public sector.

Steel Dynamics continues to generate robust cash flows and strengthen financial position. The company is well poised for growth and to deliver shareholder value through strategic and organic growth opportunities.

Steel Dynamics, Inc. Price and Consensus

Steel Dynamics, Inc. Price and Consensus | Steel Dynamics, Inc. Quote

Steel Dynamics currently carries a Zacks Rank #3 (Hold).

Stocks to Consider

Some better-ranked stocks in the basic materials space are Arkema S.A. ARKAY , Akzo Nobel N.V. AKZOY and Kronos Worldwide Inc. KRO . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 stocks here .

Arkema has an expected long-term earnings growth rate of 12.8%.

Akzo Nobelhas an expected long-term earnings growth rate of 11.1%.

Kronos Worldwide has an expected long-term earnings growth rate of 5%.

5 Trades Could Profit "Big-League" from Trump Policies

If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.

Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure.

See these buy recommendations now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Kronos Worldwide Inc (KRO): Free Stock Analysis Report

Arkema SA (ARKAY): Free Stock Analysis Report

Akzo Nobel NV (AKZOY): Free Stock Analysis Report

Steel Dynamics, Inc. (STLD): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

ARKAY KRO AKZOY STLD

Other Topics

Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More