ArcelorMittal solicits consents for 9.75% notes first issued by Ispat Inland

By Jennifer Chiou

New York, April 23 - ArcelorMittal Financial Services LLC began a solicitation of consents for its $422.5 million of 9.75% senior secured notes due 2014 originally issued by Ispat Inland ULC, according to a 424B4 filing with the Securities and Exchange Commission.

The solicitation ends at 5 p.m. ET on May 21. Plans for the solicitation were announced on April 15.

ArcelorMittal is seeking consents to amend the note indenture. Among other provisions, the amendments would allow the company to re-establish a "tower" financing structure similar to that which existed when the notes were initially issued.

Specifically, ArcelorMittal previously said that it would merge into ArcelorMittal USA Partnership, and newly formed subsidiaries of ArcelorMittal would guarantee the notes. The interest rate of the series Z first mortgage bonds, which secure the notes, would be raised by 1%.

The proposed amendments will require consents from holders of a majority of the notes.

Consenting holders will receive $1.25 per $1,000 principal amount of notes.

Citigroup Global Markets (800 558-3745 or collect 212 723-6106) is the solicitation agent. Global Bondholder Services Corp. (866 873-5600 or 212 430-3774) is the tabulation agent and information agent.

ArcelorMittal is a Chicago-based steel company. Formerly named Mittal Steel USA Inc., it merged with Ispat Inland Inc. on Dec. 31, 2005.

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