ArcelorMittal to Raise $2 Billion Through Share and Debt Issue
May 11 2020 - 11:00AM
Dow Jones News
By Jessica Sier
ArcelorMittal S.A. said Monday that it will raise around $2
billion through a share and debt issuance to cut the company's debt
levels.
The steel manufacturer intends to offer common shares and
mandatorily convertible notes in a bid to reach the company's $7
billion net debt target, it said.
"ArcelorMittal intends to use the net proceeds from the
offerings for general corporate purposes, to deleverage and to
enhance liquidity, thereby building additional resilience going
forward in what remains an uncertain environment," the company
said.
Shares in ArcelorMittal fell 10.6% to EUR9.19 following the
announcement.
The common shares are offered without nominal value and will be
available to investors in the U.S., along with the mandatoriily
convertible notes, ArcelorMittal said.
The mandatorily convertible notes are expected to pay a coupon
in the range of 5.25%-5.75% per annum, payable quarterly in
arrears, the company said.
A Mittal family trust intends to participate by placing an order
totalling around $200 million, it said.
Write to Jessica Sier at jessica.sier@wsj.com
(END) Dow Jones Newswires
May 11, 2020 10:45 ET (14:45 GMT)
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