ArcelorMittal takes in early tenders for $1.19 billion of three notes

By Susanna Moon

Chicago, Oct. 13 – ArcelorMittal SA said holders had tendered $1,194,376,000 principal amount of three series of notes as of the early deadline at 5 p.m. ET on Oct. 12.

ArcelorMittal accepted all of the tendered notes for purchase and raised the maximum purchase price to $1,410,627,664 “so as to avoid proration of any series of validly tendered notes,” according to a company notice on Friday.

Because the offers have been fully subscribed as of the early deadline, no notes tendered afterward will be accepted for purchase, the company added.

As announced Sept. 28, the company was originally tendering for up to $1.25 billion of the three note series until 11:59 p.m. ET on Oct. 26.

The breakdown for the early tenders is as follows with total purchase price for each $1,000 principal amount and the notes listed in order of priority acceptance levels:

• $440,843,000 of the $1.1 billion of 6¼% notes due 2022 with a total purchase price of $1,146.25. The coupon has changed to 6¾% under an interest adjustment clause under the note terms;

• $370,995,000 of the $1 billion of 6¾% notes due 2041 with a total purchase price of $1,190. The coupon has been raised to 7¼% under the interest adjustment clause; and

• $382,538,000 of the $1.5 billion of 7% notes due 2039 with a total purchase price of $1,212.50. The coupon has increased to 7½% under the interest adjustment clause.

The total purchase price includes an early tender premium of $50.00 per $1,000 principal amount of notes tendered by the early deadline.

Holders also will receive accrued interest.

Settlement is expected to occur on Oct. 30.

Tendered notes may not be withdrawn as of the early deadline.

Citigroup Global Markets Ltd. (liabilitymanagement.europe@citi.com, +44 20 7986 8969, 800 558-3745 or 212 723-6106), HSBC Securities (USA) Inc. (+44 20 7992 6237 or 212 525-5552), Merrill Lynch International (dg.lm_emea@baml.com, +44 20 7996 5420, 888 292-0070 or 980 388-3646) and RBC Capital Markets, LLC (liability.management@rbccm.com, +44 20 7029 7420, 877 381-2099 or 212 618-7822) are the dealer managers. D.F. King & Co. Inc. (arcelor@dfking.com, 800 814-4284, 212 269-5550, +44 20 7920 9700 or dfking.com/arcelor) is the information agent and tender agent.

ArcelorMittal is a steel and mining company based in Luxembourg.

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