U.S. Steel reports tenders of $483.91 million 8 3/8% notes due 2021

By Wendy Van Sickle

Columbus, Ohio, March 20 – United States Steel Corp. said it received tenders of $483,912,000 of its $780 million of 8 3/8% senior secured notes due July 1, 2021 by the deadline of its tender offer for the notes, 5 p.m. ET on March 19.

The tender offer opened on March 13. An additional $15,178,000 of the notes remains subject to guaranteed delivery procedures, the company reported.

The purchase price will be $1,078.46 for each $1,000 principal amount plus accrued interest up to but excluding the payment date, which was expected to be March 20.

As previously reported, the company issued a conditional redemption notice to redeem any remaining notes at a make-whole premium on April 12.

The tender offer was made “to take advantage of current favorable conditions in the debt capital markets and to extend the company’s debt maturity profile by refinancing the company’s long-term debt with longer maturity financing,” according to a past 8-K filing with the Securities and Exchange Commission.

Notes tendered under guaranteed delivery provisions are expected to settle on March 22.

J.P. Morgan Securities LLC (212 834-3424 or 866 834-4666) and Credit Suisse Securities (USA) LLC (212 538-1862 or 800 820-1653) are the dealer managers. D.F. King & Co., Inc. (800 848-3402, 212 269-5550, uss@dfking.com or dfking.com/uss) is the tender agent and information agent.

The steel company is based in Pittsburgh.

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