ArcelorMittal to Raise $2 Billion Through Share and Debt Issue

By Jessica Sier

ArcelorMittal S.A. said Monday that it will raise around $2 billion through a share and debt issuance to cut the company's debt levels.

The steel manufacturer intends to offer common shares and mandatorily convertible notes in a bid to reach the company's $7 billion net debt target, it said.

"ArcelorMittal intends to use the net proceeds from the offerings for general corporate purposes, to deleverage and to enhance liquidity, thereby building additional resilience going forward in what remains an uncertain environment," the company said.

Shares in ArcelorMittal fell 10.6% to EUR9.19 following the announcement.

The common shares are offered without nominal value and will be available to investors in the U.S., along with the mandatoriily convertible notes, ArcelorMittal said.

The mandatorily convertible notes are expected to pay a coupon in the range of 5.25%-5.75% per annum, payable quarterly in arrears, the company said.

A Mittal family trust intends to participate by placing an order totalling around $200 million, it said.

Write to Jessica Sier at [e-mail]

(END) Dow Jones Newswires

May 11, 2020 10:45 ET (14:45 GMT)

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