ArcelorMittal to exchange $246.8 million 5.5% convertibles due 2023 for shares, cash

By Wendy Van Sickle

Columbus, Ohio, Dec. 15 – ArcelorMittal SA said it entered into separate, privately negotiated exchange agreements with some holders of its 5.5% mandatorily convertible subordinated notes due 2023.

Under to the exchange agreements, the company will exchange $246.8 million principal amount of the notes for 22,653,933 shares of ArcelorMittal common stock, amounting to all existing shares held in treasury plus $25.4 million.

The company will not receive any proceeds from the delivery of the shares of common stock. The exchanges are expected to close on or about Dec. 22.

Following completion of the exchanges, about $1 billion of the notes will remain outstanding.

ArcelorMittal is a Luxembourg-based steel manufacturing company.

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