ArcelorMittal plans $3.5 billion share, convertible issue

BRUSSELS (Reuters) - ArcelorMittal(ISPA.AS), the world's largest steelmaker, will issue $3.5 billion issue of shares and convertible notes to sharply reduce a heavy debt level that has led to a cut in its credit rating to junk status.

The company said in a statement on Wednesday that the equity and debt issue, the exact make-up of which had yet to be determined, would help to reduce its net debt to about $17 billion by the end of June, from an expected $22 billion at the end of 2012.

ArcelorMittal shares, barely changed before the announcement, fell 5.0 percent to 12.74 euros by 1259 GMT, making them the weakest in the FTSEurofirst 300 index of leading European stocks.

Chairman and Chief Executive Lakshmi Mittal said the new issue, along with asset disposals, a planned reduction in dividends and cost-savings would bring forward the achievement of a medium-term debt target of $15 billion.

The Mittal family intends to pump $600 million into the new shares and notes.

The mandatory convertible subordinated notes would have a maturity of three years and pay a coupon in the range of 5.875 to 6.375 percent.

(Reporting by Philip Blenkinsop; editing by Rex Merrifield)

Updated Date: Jan 10, 2013 01:31 AM

Also Watch

IPL 2018: Royal Challengers Bangalore eye revival against Chennai Super Kings as 'Cauvery Derby' comes back to life
  • Thursday, April 26, 2018 In the Kanjarbhat community, a campaign against 'virginity tests' is slowly gaining ground
  • Tuesday, April 24, 2018 It's A Wrap: Beyond the Clouds stars Ishaan Khatter, Malavika Mohanan in conversation with Parul Sharma
  • Monday, April 9, 2018 48 hours with Huawei P20 Pro: Triple camera offering is set to redefine smartphone imaging
  • Monday, April 16, 2018 Rajyavardhan Singh Rathore interview: Sports can't be anyone's fiefdom, we need an ecosystem to nurture raw talent

Also See