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:

Monetary Policy Committee

Reuters Showcase

Microfinance

Microfinance

Funding the unfunded: India helps small business borrow to grow  Full Article 

Insurance Sector

Insurance Sector

UK healthcare firm Bupa sees strong growth in India  Full Article 

Sensex Rises

Sensex Rises

Sensex edges up; consumer and healthcare stocks rise  Full Article 

Market Eye

Market Eye

FTSE adds nine Indian firms as large-caps in Asia-Pacific ex-Japan index   Full Article 

Indian Ocean Diplomacy

Indian Ocean Diplomacy

PM Modi to ramp up help for Indian Ocean nations to counter China influence  Full Article 

ECB Bond-Buying

ECB Bond-Buying

ECB raises growth forecasts, to start printing money next week  Full Article 

China Economy

China Economy

China signals "new normal" with lower annual growth target  Full Article 

Pharma Sector

Pharma Sector

Panel recommends waiving late-stage trials for some drugs  Full Article 

E-commerce

E-commerce

China backs e-commerce expansion in win for Alibaba, JD.com  Full Article 

Reuters India Mobile

Reuters India Mobile

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