Big River Steel to expand scrap recycling, double flat steel production with new financing

Monday, 03 June 2019 00:17:38 (GMT+3)   |   San Diego
       

Big River Steel announced today that it closed and funded $487 million of 30-year bonds and $290 million of equity financing on Friday, May 31, 2019. The bonds, which are interest-only for the next 20 years, and equity proceeds will be used to expand the company’s scrap metal recycling and flat-rolled steel production facility in Osceola, Arkansas.

The expansion will double Big River's flat-rolled steel production rated capacity to 3.3 million tons annually, and will also set the stage for an incremental downstream investment which will allow the company to produce even higher grades of electrical steels, demand for which is expected to escalate with continued focus on energy efficiency and announced increases in hybrid and electric vehicle production.

The Arkansas Development Finance Authority acted as the conduit issuer of the bonds, the proceeds from which were loaned to Big River Steel. Goldman, Sachs and Co. LLC served as lead underwriter for the offering and Crews and Associates and SunTrust Robinson Humphrey acted as co-managers.


Most Recent Related Articles

US beam imports down 48.9 percent in November

S. Africa's iron ore output down by 7.6 percent in Nov from Oct

Turkish mills manage to keep HRC prices stable for now

Turkish welded pipe prices stable, mood cautious

Export price increases for Brazilian rebar