ArcelorMittal takes in tenders for $3.72 million more 7%, 6¾% notes

By Susanna Moon

Chicago, Sept. 5 – Arcelor Mittal SA said holders had tendered another $3.53 million of its 7% notes due 2039 and $188,000 of its 6¾% notes due 2041 since the early deadline of 5 p.m. ET on Aug. 20.

The purchase price for each $1,000 principal amount will be $1,120 for the 7% notes and $1,103 for the 6¾% notes, according to a notice.

As announced Aug. 7, the company is offering to spend up to $750 million to purchase its $1,117,462,000 of 7% notes due 2039 and its $629,005,000 of 6¾% notes due 2041.

The notes are listed in order of priority acceptance levels.

Holders had tendered $428,331,00 of the 7% notes and $194,412,000 of the 6¾% notes by the early deadline.

The total purchase price for each $1,000 principal amount was $1,170 for the 7% notes and $1,153 for the 6¾% notes, which included a premium of $50 per $1,000 of notes tendered before the early deadline.

The company paid $725,304,306 to purchase these early tendered notes, leaving $24,695,694 to purchase any notes tendered afterward.

The tender offer ended at 11:59 p.m. ET on Sept. 4.

Holders also will receive accrued interest.

Settlement was Aug. 22 for early tendered notes and will occur on Sept. 6 for any remaining tenders.

Notes purchased in the offers will be retired and canceled.

ArcelorMittal previously said it will fund the offers with existing cash and liquidity resources.

“The offers are being made to reduce gross debt and interest expense through the early repayment of certain long-term bonds issued by the company,” according to a previous release.

Citigroup Global Markets Ltd. (+44 20 7986 8969, 800 558 3745, 212 723 6106 or liabilitymanagement.europe@citi.com), Credit Agricole Securities (USA) Inc. (866 807-6030 or 212 261-7802), J.P. Morgan Securities LLC (866 834-4666 or 212 834-3424) and Merrill Lynch International (+44 20 7996 5420, 888 292-0070, 980 387-3907 or DG.LM_EMEA@baml.com) are the dealer managers. D.F. King (800 499-8410, 212 269-5550, +44 20 7920 9700, arcelor@dfking.com or dfking.com/arcelor) is the information agent and tender agent.

ArcelorMittal is a Luxembourg-based steel producer.

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