United States Steel Corporation Completes $1.1 Billion of Incremental Financing to Support Strategy Execution
October 25 2019 - 6:48PM
United States Steel Corporation (X) (“U. S. Steel”) today announced
that it has completed approximately $1.1 billion of financing
activities to support the execution of the Company’s “best of both”
strategy.
“The closing of these financing activities marks
another successful step in the execution of our ‘best of both’
strategy,” said David B. Burritt, President and Chief Executive
Officer of U. S. Steel. “I am thankful for the strong support from
our investors and bank groups of our goal to create a
differentiated, world-competitive company.”
A summary of our recently completed financing
activities appears below:
$2.0 Billion Revolving Credit
Facility
On October 10, 2019, we launched the syndication
of a new five-year senior secured asset-based revolving credit
facility in an aggregate amount up to $2.0 billion (the “Fifth
Amended and Restated Credit Agreement”) to replace the existing
Fifth Amended and Restated Credit Agreement. The Fifth Amended and
Restated Credit Agreement has substantially the same terms as the
existing Credit Facility Agreement, except that the Fifth Amended
and Restated Credit Agreement includes certain changes, notably
that it will mature in 2024 and has a “first-in, last-out” tranche
in an amount up to $150 million. The Fifth Amended and Restated
Credit Agreement closed on October 25, 2019.
$275 Million / 5.75% / 30-Year
Environmental Revenue Bonds
On October 10, 2019, we launched offerings of
two series of environmental revenue bonds in aggregate principal
amount of approximately $368 million, that will mature between 2024
and 2049 (collectively, the “2019 Environmental Revenue Bonds”).
Proceeds of the 2019 Environmental Revenue Bonds in the amount of
approximately $93 million will be used to redeem a portion of our
existing outstanding environmental revenue bonds for which we
issued a conditional redemption notice and will mature in 2024 and
2030. Proceeds of the 30-year Environmental Revenue Bonds in the
amount of $275 million will be used to finance or refinance the
acquisition, construction, equipping and installation of certain
solid waste disposal facilities, including an electric arc furnace
and other equipment and facilities at the Company’s Fairfield Works
and will mature in 2049. The 2019 Environmental Revenue Bonds
closed on October 25, 2019.
$350 Million / 5.00% / Senior
Convertible Notes Due 2026
On October 21, 2019, U. S. Steel issued an
aggregate principal amount of $300 million of 5.00% Senior
Convertible Notes due November 1, 2026 (the “2026 Senior
Convertible Notes”). In connection with the issuance of the 2026
Senior Convertible Notes, U. S. Steel granted the initial
purchasers a 30-day option to purchase up to an additional $50
million in aggregate principal amount of 2026 Senior Convertible
Notes, on the same terms and conditions. On October 23, 2019, the
initial purchasers exercised this option in full and U. S. Steel
issued an additional $50 million of 2026 Senior Convertible Notes
on October 25, 2019. U. S. Steel received net proceeds of
approximately $340 million from the issuance of the 2026 Senior
Convertible Notes after deducting underwriting fees and estimated
offering expenses. The Company intends to use the net proceeds for
general corporate purposes, including, without limitation, for
previously announced strategic investments and capital
expenditures. Interest on the 2026 Senior Convertible Notes is
payable semi-annually on May 1 and November 1 of each year,
commencing on May 1, 2020.
FORWARD-LOOKING STATEMENTS
This release contains information that may
constitute “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. We intend
the forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements in those sections.
Generally, we have identified such forward-looking statements by
using the words “believe,” “expect,” “intend,” “estimate,”
“anticipate,” “project,” “target,” “forecast,” “aim,” “should,”
“will” and similar expressions or by using future dates in
connection with any discussion of, among other things, operating
performance, trends, events or developments that we expect or
anticipate will occur in the future, statements relating to volume
changes, share of sales and earnings per share changes, and
statements expressing general views about future operating results.
However, the absence of these words or similar expressions does not
mean that a statement is not forward-looking. Forward-looking
statements are not historical facts, but instead represent only the
Company’s beliefs regarding future events, many of which, by their
nature, are inherently uncertain and outside of the Company’s
control. It is possible that the Company’s actual results and
financial condition may differ, possibly materially, from the
anticipated results and financial condition indicated in these
forward-looking statements. Management believes that these
forward-looking statements are reasonable as of the time made.
However, caution should be taken not to place undue reliance on any
such forward-looking statements because such statements speak only
as of the date when made. Our Company undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, except
as required by law. In addition, forward-looking statements are
subject to certain risks and uncertainties that could cause actual
results to differ materially from our Company's historical
experience and our present expectations or projections. These risks
and uncertainties include but are not limited to the risks and
uncertainties described in “Item 1A. Risk Factors” in our Annual
Report on Form 10-K for the year ended December 31, 2018, our
Quarterly Report on Form 10-Q for the quarter ended September 30,
2019, and those described from time to time in our future reports
filed with the Securities and Exchange Commission. References to
"we," "us," "our," the "Company," and "U. S. Steel," refer to
United States Steel Corporation and its consolidated
subsidiaries.
2019-034
About U. S. Steel
United States Steel Corporation, headquartered
in Pittsburgh, Pa., is a leading integrated steel producer and
Fortune 250 company with major operations in the United States and
Central Europe. For more information about U. S. Steel, please
visit www.ussteel.com.
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CONTACTS:MediaAmanda
MalkowskiAnalystCorporate CommunicationsT - (412) 433-2512E -
almalkowski@uss.com |
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Investors/AnalystsKevin
LewisGeneral ManagerInvestor RelationsT - (412) 433-6935E -
klewis@uss.com |
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