ArcelorMittal inks repurchase agreements for some 5.5% convertibles

By Wendy Van Sickle

Columbus, Ohio, Dec. 13 – ArcelorMittal SA entered into separate, privately negotiated repurchase transactions with some holders of its 5.5% mandatorily convertible subordinated notes due 2023 under which the company will repurchase approximately $395 million of the convertibles, according to a news release.

The aggregate repurchase price will be based on the daily volume-weighted average price of the company’s ordinary shares during a price-determination period following execution of the repurchase agreements.

ArcelorMittal anticipates that holders of the outstanding notes it is repurchasing may unwind related hedge positions by buying ordinary shares of the company during the price-determination period.

Following completion of the repurchases, about $608 million principal amount of the convertibles will remain outstanding. ArcelorMittal will issue a press release after the price-determination period to announce the aggregate repurchase price.

The company said the transaction is a step in its ongoing capital return program.

Citigroup Global Markets Inc. is acting as the exclusive agent.

ArcelorMittal is a Luxembourg-based steel and mining company.

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