U. S. Steel Adds Sustainability Performance Targets to Credit Facilities to Support Best for All℠ Strategy
24 July 2021 - 6:23AM
Business Wire
United States Steel Corporation (NYSE: X) (“U. S. Steel” or
“company”) today announced changes to two asset-based credit
facilities that reward performance for meeting sustainability
targets. This is part of the ongoing execution of the company’s
Best for All℠ strategy of creating profitable solutions for
sustainable steelmaking.
At the company’s request, its $2 billion asset-based revolving
credit facility (the “ABL”) has been amended to include an increase
or decrease in the margin payable based on achievement of targets
related to carbon reduction, safety performance and facility
certification by ResponsibleSteel™. When U. S. Steel joined the
global not-for-profit organization in April, it became the first
North American steelmaker to gain membership in ResponsibleSteel,
which provides a process and certification framework for
sustainable steel use throughout its lifecycle. In addition to the
new sustainability link, the ABL has also been amended to reduce
the credit line to $1.75 billion from $2 billion, which supports
the company’s current footprint and is consistent with the
company’s efforts to optimize its global liquidity position.
Additionally, the company’s subsidiary, Big River Steel,
extended its $350 million ABL by five years to 2026 and included
the same sustainability performance targets.
“These loan amendments align U. S. Steel’s financial incentives
with our sustainability performance commitments,” U. S. Steel
President and Chief Executive Officer David B. Burritt said. “Under
U. S. Steel’s Best for All strategy, sustainability and
profitability are both necessary to achieving our goal of net-zero
carbon emissions by 2050. That path is one where U. S. Steel’s
innovation and creativity are coming together to meet the defining
challenges of this era.”
U. S. Steel in April announced its 2050 net-zero target, part of
a transformational commitment to sustainable and profitable
steelmaking. U. S. Steel expects to leverage its growing fleet of
electric arc furnaces coupled with other technologies such as
direct reduced iron, carbon-free energy sources, and carbon
capture, sequestration, and utilization. Achieving the goal depends
on public-private collaboration across industries and global
stakeholders to develop breakthroughs, including access to
commercially available carbon-neutral electricity sources.
J.P. Morgan Securities LLC and ING Capital LLC acted as Joint
Sustainability Structuring Agents in the U. S. Steel
Sustainability-linked ABL. Goldman Sachs Bank NA and ING Capital
LLC acted as Joint Sustainability Structuring Agents in the BRS
Sustainability-linked ABL.
Founded in 1901, United States Steel Corporation is a leading
steel producer. With an unwavering focus on safety, the company’s
customer-centric Best for All℠ strategy is advancing a more secure,
sustainable future for U. S. Steel and its stakeholders. With a
renewed emphasis on innovation, U. S. Steel serves the automotive,
construction, appliance, energy, containers, and packaging
industries with high value-added steel products such as U. S.
Steel’s proprietary XG3™ advanced high-strength steel. The company
also maintains competitively advantaged iron ore production and has
an annual raw steelmaking capability of 26.2 million net tons. U.
S. Steel is headquartered in Pittsburgh, Pennsylvania, with
world-class operations across the United States and in Central
Europe. For more information, please visit www.ussteel.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210723005482/en/
John O. Ambler Vice President Corporate Communications T – (412)
433-2407 E – joambler@uss.com Kevin Lewis Vice President Investor
Relations T – (412) 433-6935 E – klewis@uss.com
US Steel (NYSE:X)
Historical Stock Chart
From Apr 2024 to May 2024
US Steel (NYSE:X)
Historical Stock Chart
From May 2023 to May 2024