On April 29 Luxembourg-based steel giant ArcelorMittal announced the pricing of its offerings of common shares and convertible senior notes.
ArcelorMittal has filed registration statements with the US Securities and Exchange Commission for the offerings to which this communication relates.
Accordingly, total aggregate proceeds from the offerings are approximately $3.5 billion (exclusive of any proceeds attributable to the underwriters' possible exercise of their over-allotment options described below) or $4 billion (assuming full exercise of those options), in each case before deduction of underwriting discounts and commissions.
The company said in a statement that it has agreed to sell 125,143,915 common shares at a public offering price of €17.10 (US$22.77) per common share. ArcelorMittal added that it has granted the underwriters an option to purchase up to an additional 15,738,719 common shares in the 30-day period following the date hereof.
In addition, the company announced the pricing of its public offering of a US$700 million aggregate principal amount of five percent convertible senior notes due May 15, 2014. The company has granted the underwriters an option to purchase up to an additional US$100 million aggregate principal amount of convertible senior notes in the 30-day period following the date hereof
The offerings are scheduled to close on May 6, 2009, subject to satisfaction of customary conditions. The closing of each offering is not contingent on the closing of the other.
ArcelorMittal intends to use the proceeds of the common stock offering for general corporate purposes and to strengthen its balance sheet and the proceeds of the convertible senior note offering to lengthen its debt maturity profile and refinance existing indebtedness under various revolving credit facilities, with maturities ranging from 2010 until 2012.
Goldman Sachs International will act as sole global coordinator and bookrunner for the offerings. CALYON and Société Générale Corporate and Investment Banking will also act as bookrunners. Morgan Stanley is acting as a joint bookrunner, while BNP Paribas, ABN AMRO, HSBC Bank Plc, Citigroup and JPMorgan Chase will act as co-bookrunners.