STEEL DYNAMICS INC Debt Disclosure

Note 3. Long-Term Debt

The company’s borrowings consisted of the following at December 31 (in thousands):

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Financing Activity

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In March 2025, the company issued $600.0 million of 5.250% notes due 2035 and $400.0 million of 5.750% notes due 2055. Proceeds from these notes were used for repayment of the company’s $400.0 million of 2.400% notes due 2025 and for other general corporate purposes.

In November 2025, the company issued $650.0 million of 4.000% notes due 2028 and an additional $150.0 million of 5.250% notes due 2035. Proceeds from these notes were used to redeem the company’s $400.0 million of 5.000% notes due 2026 and for other general corporate purposes.

Senior Credit Facility, due 2028

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On July 19, 2023, the company entered into an unsecured credit agreement comprised of a senior unsecured credit facility (Facility), which provides a $1.2 billion unsecured Revolver, maturing July 2028. Subject to certain conditions, the company has the opportunity to increase the Facility size by $500.0 million. The unsecured Facility is available to fund working capital, capital expenditures, and other general corporate purposes. The Facility contains financial covenants and other covenants pertaining to the company’s ability to incur indebtedness and permit liens on certain assets. The company’s ability to borrow funds within the terms of the unsecured Facility is dependent upon its continued compliance with financial and other covenants. At December 31, 2025, the company had $1.2 billion of availability on the Facility, $9.2 million of outstanding letters of credit and other obligations which reduce availability, and there were no borrowings outstanding.

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The Facility pricing grid is adjusted quarterly and is based on either the company’s leverage of net debt (as defined in the Facility) to last-twelve-months (LTM) consolidated EBITDA as defined in the Facility (earnings before interest, taxes, depreciation, amortization, and certain other non-cash items as allowed in the Facility), or the company’s credit ratings. The minimum pricing is adjusted Secured Overnight Financing Rate (SOFR) plus 1.000% and the maximum pricing is adjusted SOFR plus 1.75%. In addition, the company is subject to an unused commitment fee of between 0.11% and 0.275% (based on either the leverage of net debt to LTM consolidated EBITDA, or the company’s credit ratings) which is applied to the unused portion of the Facility.

Note 3. Long-Term Debt (Continued)

The financial covenants under the Facility state that the company must maintain an interest coverage ratio of not less than 2.50:1.00. The company’s interest coverage ratio is calculated by dividing its LTM consolidated EBITDA by its LTM gross interest expense, less amortization of financing fees. In addition, a debt to capitalization ratio of not more than 0.60:1.00 must be maintained. At December 31, 2025, the company’s interest coverage ratio and debt to capitalization ratio were 13.33:1.00 and 0.32:1.00, respectively. The company was, therefore, in compliance with these covenants at December 31, 2025, and anticipates remaining in compliance during the next twelve months.

Senior Unsecured Notes

The company has eight different tranches of senior unsecured notes (Notes) outstanding. These Notes are in equal right of payment with all existing and future senior unsecured indebtedness and are senior in right of payment to all subordinated indebtedness. These Notes contain provisions that allow the company to redeem the Notes on or after the dates and at redemption prices (expressed as a percentage of principal amount) listed below.

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The company’s $350.0 million of 1.650% senior notes due 2027 mature on October 15, 2027, with interest payable semi-annually. Early redemption is permitted any time prior to August 15, 2027, at the greater of par or a make-whole price of the remaining payments to be made discounted at the applicable U.S. Treasury rate plus 0.20%; and as of August 15, 2027, at 100.000%.

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The company’s $650.0 million of 4.000% senior notes due 2028 mature on December 15, 2028, with interest payable semi-annually. Early redemption is permitted any time prior to November 15, 2028, at the greater of par or a make-whole price of the remaining payments to be made discounted at the applicable U.S. Treasury rate plus 0.10%; and as of November 15, 2028, at 100.000%.

The company’s $600.0 million of 3.450% senior notes due 2030 mature on April 15, 2030, with interest payable semi-annually. Early redemption is permitted any time prior to January 15, 2030, at the greater of par or a make-whole price of the remaining payments to be made discounted at the applicable U.S. Treasury rate plus 0.25%; and as of January 15, 2030, at 100.000%.

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The company’s $500.0 million of 3.250% senior notes due 2031 mature on January 15, 2031, with interest payable semi-annually. Early redemption is permitted any time prior to October 15, 2030, at the greater of par or a make-whole price of the remaining payments to be made discounted at the applicable U.S. Treasury rate plus 0.40%; and as of October 15, 2030, at 100.000%.

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The company’s $600.0 million of 5.375% senior notes due 2034 mature on August 15, 2034, with interest payable semi-annually. Early redemption is permitted any time prior to May 15, 2034, at the greater of par or a make-whole price of the remaining payments to be made discounted at the applicable U.S. Treasury rate plus 0.20%; and as of May 15, 2034, at 100.000%.

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The company’s $750.0 million of 5.250% senior notes due 2035 mature on May 15, 2035, with interest payable semi-annually. Early redemption is permitted any time prior to February 15, 2035, at the greater of par or a make-whole price of the remaining payments to be made discounted at the applicable U.S. Treasury rate plus 0.20%; and as of February 15, 2035, at 100.000%.

The company’s $400.0 million of 3.250% senior notes due 2050 mature on October 15, 2050, with interest payable semi-annually. Early redemption is permitted any time prior to April 15, 2050, at the greater of par or a make-whole price of the remaining payments to be made discounted at the applicable U.S. Treasury rate plus 0.30%; and as of April 15, 2050, at 100.000%.

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Note 3. Long-Term Debt (Continued)

The company’s $400.0 million of 5.750% senior notes due 2055 mature on May 15, 2055, with interest payable semi-annually. Early redemption is permitted any time prior to November 15, 2054, at the greater of par or a make-whole price of the remaining payments to be made discounted at the applicable U.S. Treasury rate plus 0.25%; and as of November 15, 2054, at 100.000%.

Other Obligations

Secured Loans. Two of the company’s controlled subsidiaries have entered into financing agreements for certain equipment which bear a weighted average interest rate of 5.15%, with monthly principal and interest payments required through 2033. The outstanding principal balance of these agreements was $3.4 million and $2.4 million at December 31, 2025, and 2024, respectively.

One of the company’s controlled subsidiaries has a secured credit agreement, which matures in March 2026, and provides a revolving variable rate credit facility of up to $30.0 million, subject to a borrowing base determined from eligible accounts receivable and inventory. Interest, which was 5.12% at December 31, 2025, is payable monthly. There were no amounts due under the credit facility at December 31, 2025 or 2024.

Another of the company’s controlled subsidiaries has a secured credit agreement, which matures in June 2028, and provides a revolving variable rate credit facility of up to $125.0 million, subject to a borrowing base determined from eligible accounts receivable and inventory. Interest, which was 5.47% at December 31, 2025, is payable monthly. Amounts due under the credit facility were $33.2 million and $26.4 million at December 31, 2025, and 2024, respectively.

Outstanding Debt Maturities

Maturities of outstanding debt as of December 31, 2025, are as follows (in thousands):

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The company capitalizes interest on all qualifying construction in progress assets. For the years ended December 31, 2025, 2024, and 2023, total interest costs incurred were $170.6 million, $123.1 million, and $109.5 million, respectively, of which $100.6 million, $66.8 million, and $33.0 million, respectively, were capitalized.