ArcelorMittal plans $3.5 billion share, convertible issue

BRUSSELS Wed Jan 9, 2013 7:01pm IST

The logo of the ArcelorMittal's steel plant is seen on the site of Fos-sur-Mer near Marseille, South eastern France, November 5, 2008. REUTERS/Jean-Paul Pelissier/Files

The logo of the ArcelorMittal's steel plant is seen on the site of Fos-sur-Mer near Marseille, South eastern France, November 5, 2008.

Credit: Reuters/Jean-Paul Pelissier/Files

Related Topics

Stocks

   

BRUSSELS (Reuters) - ArcelorMittal(ISPA.AS), the world's largest steelmaker, will issue $3.5 billion issue of shares and convertible notes to sharply reduce a heavy debt level that has led to a cut in its credit rating to junk status.

The company said in a statement on Wednesday that the equity and debt issue, the exact make-up of which had yet to be determined, would help to reduce its net debt to about $17 billion by the end of June, from an expected $22 billion at the end of 2012.

ArcelorMittal shares, barely changed before the announcement, fell 5.0 percent to 12.74 euros by 1259 GMT, making them the weakest in the FTSEurofirst 300 index of leading European stocks.

Chairman and Chief Executive Lakshmi Mittal said the new issue, along with asset disposals, a planned reduction in dividends and cost-savings would bring forward the achievement of a medium-term debt target of $15 billion.

The Mittal family intends to pump $600 million into the new shares and notes.

The mandatory convertible subordinated notes would have a maturity of three years and pay a coupon in the range of 5.875 to 6.375 percent.

(Reporting by Philip Blenkinsop; editing by Rex Merrifield)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Trade Deal

REUTERS SHOWCASE

Record High

Record High

Nifty hits record high on foreign buying, higher Asian stocks.  Full Article 

Bullish on Equities

Bullish on Equities

Bullish on Indian equities, but gains seen 'less sharp'- Goldman Sachs  Full Article 

Facebook Results

Facebook Results

Second quarter revenue increases 61 percent  Full Article 

BRICS Bank

BRICS Bank

World Bank chief welcomes new BRICS development bank.  Full Article 

Streamlining Operations

Jet Streamlines

Jet Airways chairman says looking to restructure debts, talking to bankers  Full Article 

Political Economy

Political Economy

Analysis - Watch what markets don't do as world politics turns nasty   Full Article 

Photo

Honda's India Thrust

Honda's India unit to account for 25 pct of Asia Pacific sales by March 2017 - exec   Full Article 

 Boosting Output

Boosting Output

NMDC plans to boost iron ore output by two-thirds  Full Article 

Apple Results

Apple Results

Apple margin concerns fade, focus shifts to iPhone launch  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage