Distributors/Service Centers
May 26, 2026
Worthington launches $900M notes offering for Kloeckner buy
Written by Ethan Bernard
Worthington Steel said on Tuesday its subsidiary plans to raise $900 million through a senior secured notes offering to raise funds for the company’s pending Kloeckner acquisition.
The Columbus, Ohio-based service center group will execute the offering through WS Escrow LLC, a wholly owned subsidiary of Worthington Steel. The offering is subject to market conditions and other factors. And the principal amount of senior secured notes will be due in 2033.
Recall Worthington confirmed it was in talks to acquire Germany-based metal distributor Kloeckner in December. The companies signed a formal agreement in January. At the end of March, Worthington said it had exceeded the share threshold for the deal.
Worthington said in a press release it intends to use the proceeds from the proposed offering to fund its pending acquisition of Kloeckner & Co SE. (The full statement is here.)
The company noted proceeds from the notes may be held in escrow unless the Kloeckner deal is expected to close within three business days of the offering. Also, the notes would be subject to early redemption if the deal is not completed by March 12, 2027.
Worthington has said its offer for Kloeckner implies an enterprise value of $2.4 billion.
