Loan & DebtJun 2, 2026, 05:12 PM
Worthington Steel Prices $700M Senior Secured Notes Due 2033
AI Summary
Worthington Steel, Inc. announced the pricing and issuance of $700 million in 7.750% Senior Secured Notes due 2033. The net proceeds, along with borrowings from a new term loan facility and cash on hand, will primarily finance the pending Klöckner Acquisition, repay existing indebtedness, and support general working capital. The company adjusted its financing mix, decreasing the note offering from an initial $900 million to $700 million, with a corresponding increase in its term loan facility.
Key Highlights
- Issued $700 million aggregate principal amount of 7.750% Senior Secured Notes due 2033.
- Notes mature on June 1, 2033, with semiannual interest payments commencing December 1, 2026.
- Proceeds will fund the Klöckner Acquisition, repay existing debt, and provide general working capital.
- The note offering amount was decreased from $900 million to $700 million.
- Term loan credit facility simultaneously increased from $500 million to $700 million.
- Notes are senior secured obligations, guaranteed by the company's restricted subsidiaries.
- Special mandatory redemption if Klöckner Acquisition is not consummated by March 12, 2027.
- Company may redeem notes early under various conditions, including with equity offering proceeds.
Price Impact
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