ArcelorMittal Sets Terms for $3 Billion Rights Issue --Update
11 March 2016 - 9:20PM
Dow Jones News
By Alex MacDonald
LONDON--Steel giant ArcelorMittal (MT) on Friday outlined the
terms of a $3 billion rights issue aimed at shoring up its finances
while grappling with a global steel glut that pushed it to a $6.7
billion loss in the fourth quarter.
The world's largest steelmaker by output said it would issue
1.26 billion shares at EUR2.20 a share ($2.45) after shareholders
on Thursday approved the company's plan to allow shareholders to
buy seven new shares for every 10 they hold. The issue price
represents a 35.3% discount to ArcelorMittal's theoretical
ex-rights price, based on its closing Euronext Amsterdam share
price on March 10.
ArcelorMittal plans to use the proceeds to reduce its debt and
strengthen its balance sheet.
The Mittal family, which owns a 37.38% stake in the firm, said
it has agreed to subscribe to its entitlement of the share issue,
which would equate to roughly $1.1 billion.
The company and the Mittal family have agreed the issued shares
won't be sold for a period of 180 days following the rights issue.
Shareholders will have from March 15 up to March 30 to elect to
take up their portion of the share issue.
The offering is underwritten by a syndicate of banks led by
Goldman Sachs Group Inc., BofA Merrill Lynch and Crédit Agricole
acting as joint global coordinators and joint bookrunners.
Barclays, BNP Paribas, Citigroup, J.P. Morgan and Société Générale
are also acting as joint bookrunners.
ArcelorMittal's shares were up 3.6% at EUR4.39 a share.
-Write to Alex MacDonald at alex.macdonald@wsj.com
(END) Dow Jones Newswires
March 11, 2016 05:05 ET (10:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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