Worthington Steel raises $1.4B for Klöeckner acquisition - Bloomberg

[large bowl of molten metal at a steel mill. Steel production.]
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Worthington Steel (WS [https://seekingalpha.com/symbol/WS]) has raised $1.4B [https://www.bloomberg.com/news/articles/2026-05-28/worthington-steel-raises-1-4-billion-for-kloeckner-takeover?srnd=homepage-americas] in the leveraged finance market to help fund its acquisition of German metals company Klöeckner & Co., Bloomberg reported Thursday.

Worthington (WS [https://seekingalpha.com/symbol/WS]) priced $700M each of junk bonds and leveraged loans in deals led by Wells Fargo, after initially planning for a $900M note and a $500M loan, according to the report.

The seven-year bond reportedly has a yield of 7.75%, compared to price talk of ~8.25%, while the loan has a margin four percentage points above benchmark and was issued at 98.5 cents on the dollar, after it was initially offered at 98 cents.

Worthington (WS [https://seekingalpha.com/symbol/WS]) announced an agreement in January [https://seekingalpha.com/news/4539680-worthington-steel-to-buy-metal-processor-kloeckner-in-deal-valued-at-24b] to acquire Klöeckner in a deal valued at $2.4B, creating North America's second-largest steel service center company; the transaction is expected to close on June 3.

MORE ON WORTHINGTON STEEL

* Worthington Steel: Growing Bigger, Becoming More Uncertain [https://seekingalpha.com/article/4888938-worthington-steel-growing-bigger-becoming-more-uncertain]
* Worthington Steel's Transformative Acquisition Of Klöeckner Carries Risk [https://seekingalpha.com/article/4860662-worthington-steel-transformative-kloeckner-acquisition-carries-risk]
* Worthington Steel Q3 2026 Earnings Call Presentation [https://seekingalpha.com/article/4886201-worthington-steel-inc-2026-q3-results-earnings-call-presentation]