On July 17, Luxemburg-based steel giant ArcelorMittal announced a positive outcome to the covenant amendment request to existing lenders as regards its €17 billion credit facilities, its US$4 billion revolving credit facility and its US$3.25 billion forward start facility.
According to a statement released by ArcelorMittal, "The covenant consent process does not increase the borrowing costs under these facilities unless the leverage ratio of net debt to EBITDA rises above 3.5 times."
"The company has received consents from lenders aggregating above 90 percent of commitments in each facility in question with no declines to date. While a number of lenders continue to work on the request, the consent threshold for each facility has been comfortably achieved," the statement continued.
As SteelOrbis reported last week, on June 8 ArcelorMittal confirmed that it was in advanced discussions with its principal lenders with a view to changing the financial leverage covenant in its main banking facilities for a period of one year, stating that it would make a further announcement in due course after the conclusion of the discussions with the banks.
The company will disclose further details in its earnings announcement for the second quarter of 2009, scheduled to be released on July 29.