By Rebecca Melvin
New York, March 24 - ArcelorMittal priced an upsized €1.1 billion of five-year convertible bonds in the Oceane structure to yield 7.25% with an initial conversion premium of 32%, according to a market source.
Strong demand caused the private placement to be upsized from an originally talked €750 million.
The deal also priced at the rich end of talk, which was for coupon of 7.25% to 7.75% and an initial conversion premium of 27% to 32%.
There is a greenshoe of €150 million, which was upsized from €120 million.
Calyon and Societe Generale Corporate & Investment Banking are joint bookrunners and lead managers, with Natixis and Rabobank acting as co-lead managers.
Proceeds are expected to be used to help refinance and to lengthen maturity profiles.
The initial conversion price is €20.25, and the bonds will be exchangeable for existing shares or cash as of May 13, 2009 through maturity.
The convertibles are callable after four years, subject to a 150% share price trigger.
There's dividend and takeover protection.
ArcelorMittal plans to list the bonds on the Luxembourg Stock Exchange.
The steel maker also confirmed guidance for first quarter EBITDA of $1 billion, plus or minus 15%.
The steel company is based in Luxembourg City, Luxembourg.
| Issuer: | ArcelorMittal
|
| Issue: | Convertible bonds in Oceane structure
|
| Amount: | €1.1 billion, upsized from €750 million
|
| Greenshoe: | €150 million, upsized from €120 million
|
| Maturity: | April 1, 2014
|
| Bookrunners: | Calyon, Societe General
|
| Co-lead managers: | Natixis, Rabobank
|
| Coupon: | 7.25%
|
| Price: | Par
|
| Yield: | 7.25%
|
| Conversion premium: | 32%
|
| Conversion price: | €20.25
|
| Price talk: | 7.25%-7.75%, up 27%-32%
|
| Call: | Non-callable until April 2013
|
| Pricing date: | March 24
|
| Settlement date: | April 1
|
| Distribution: | Private placement
|
| Listing: | Luxembourg Stock Exchange
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
