ArcelorMittal tenders for $1.5 billion notes due 2019 with 10.85% rate

By Susanna Moon

Chicago, May 11 – ArcelorMittal SA said it is tendering for any and all of its $1.5 billion outstanding 9.85% notes due June 1, 2019, with an interest rate that has increased to 10.85% under the note terms.

The purchase price will be $1,170 for each $1,000 principal amount plus accrued interest to but excluding the settlement date.

The tender offer will end at 5 p.m. ET on May 18. Tendered notes may be withdrawn before the offer ends.

ArcelorMittal will fund the offer with cash, including proceeds of its rights offering that closed on April 8.

The tender offer is being made to reduce debt through the early repayment of medium-term maturing bonds, according to a company announcement.

Holders may tender notes under guaranteed delivery procedures by sending a notice of guaranteed delivery.

Barclays (800 438-3242, 212 528-7581 or +44 20 3134 8515 or liability.management@barclays.com), BNP Paribas (888 210-4358 or 212 841-3059), Citigroup Global Markets Ltd. (+44 20 7986 8969, 800 558-3745, 212 723-6106 or liabilitymanagement.europe@citi.com) and J.P. Morgan Securities LLC (866 834-4666 or 212 834-3424) are the dealer managers. D.F. King (+44 0 20 7920 9700, 800 814-4284 or 212 269 5550, +852 3953 7230, arcelor@dfkingltd.com or dfking.com/arcelor) is the information agent and tender agent.

ArcelorMittal is a Luxembourg-based steel producer.

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