United States Steel Corporation (NYSE: X) (“U. S. Steel”) today
announced the closing of $290 million unsecured Arkansas
Development Finance Authority environmental improvement revenue
bonds, which carry a green bond designation (the “Green Bonds”).
Proceeds of the bonds will be used for “eligible Green Projects”
within the meaning of the Green Bond Principles of The
International Capital Market Association.
Separately, the Company successfully repurchased approximately
$300 million of outstanding debt at a discount to par through a
tender offer process completed last week. Together, these actions
result in the following improvements:
- Extended maturity profile: Weighted average duration of
all outstanding debt extended by two years. Weighted average debt
maturity is now approximately 14 years. Continue to have no
significant debt maturities through the strategic Best for All®
- Reduced cash interest expense: Annual cash interest
savings of approximately $5 million.
- Maintained leverage metric: Leverage neutral while
strengthening our financial position.
“Friday’s closing on the Green Bonds reinforces our commitment
to achieving our 2030 greenhouse gas emissions intensity reduction
and 2050 net-zero goals,” commented U. S. Steel President and Chief
Executive Officer David B. Burritt. “We are also continuing to
strengthen our balance sheet, in-line with our capital allocation
priorities, by replacing more expensive, nearer-term debt with less
expensive, longer-dated debt, all while reducing our interest
expense and extending our maturity profile.”
The Green Bonds, issued through Arkansas Development Finance
Authority, have a coupon rate of 5.45% and carry a final maturity
of 2052. Under the agreement with the Arkansas bond issuer, U. S.
Steel will pay semiannual interest.
The Company will use the proceeds from the Green Bonds to
partially fund work related to its solid waste disposal facilities,
including two electric arc furnaces (EAF) and other equipment and
facilities at its new technologically advanced flat rolled
steelmaking facility, Big River 2 (BR2), currently under
construction near Osceola, Arkansas. The facility will recycle,
refine, and process scrap steel into finished steel products.
Construction of BR2 is expected to be completed in 2024, and
once complete will be the most advanced steelmaking facility in
North America, featuring two EAFs, with a total three million tons
per year of advanced steelmaking capability, a state-of-the-art
endless casting and rolling line and advanced finishing
capabilities. BR2 is expected to operate with up to 70-80% fewer
greenhouse gas emissions compared to the traditional integrated
steelmaking approach and directly support the Company’s
BofA Securities, Barclays, Citigroup, Goldman Sachs & Co.
LLC, J.P. Morgan, Morgan Stanley, Wells Fargo Securities, and Crews
& Associates, Inc. acted as underwriters for the Green
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
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,”
“plan,” “goal,” “future,” “will,” "may" and similar expressions or
by using future dates in connection with any discussion of, among
other things, the construction or operation of new or existing
facilities, 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, anticipated cost savings, potential capital and
operational cash improvements, changes in global supply and demand
conditions and prices for our products, international trade duties
and other aspects of international trade policy, statements
regarding our future strategies, products and innovations,
statements regarding our greenhouse gas emissions reduction goals
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 fiscal year ended December 31, 2021 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 unless otherwise indicated by the context.
Founded in 1901, United States Steel Corporation is a leading
steel producer. With an unwavering focus on safety, the company’s
customer-centric Best for All® strategy is advancing a more secure,
sustainable future for U. S. Steel and its stakeholders. With a
renewed emphasis on innovation, U. S. Steel serves the automotive,
construction, appliance, energy, containers, and packaging
industries with high value-added steel products such as U. S.
Steel’s proprietary XG3™ advanced high-strength steel. The company
also maintains competitively advantaged iron ore production and has
an annual raw steelmaking capability of 22.4 million net tons. U.
S. Steel is headquartered in Pittsburgh, Pennsylvania, with
world-class operations across the United States and in Central
Europe. For more information, please visit www.ussteel.com.
version on businesswire.com: https://www.businesswire.com/news/home/20220905005437/en/
Arista Joyner Manager Financial Communications T – (412)
433-3994 E – email@example.com Kevin Lewis Vice President
Investor Relations T – (412) 433-6935 E – firstname.lastname@example.org
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