a Leading metallurgical company in the world ArcelorMittal announced today its intention to offer on the open market common shares without par value mandatory convertible bonds for an expected total amount of about 2.0 billion US dollars.
raising capital is a pre-emptive measure to accelerate the achievement of a target net debt of 7 billion US dollars, said in ArcelorMittal.
BNP Paribas, Crédit Agricole Corporate and Investment Bank, Goldman Sachs & Co. LLC, JP Morgan and Société Générale will act as joint global coordinators and joint bookrunners of the offerings.
the Company intends to use the net proceeds from the offerings for General corporate purposes, to reduce the amount of funds and increase liquidity, thereby creating additional stability in the conditions of uncertainty associated with the pandemic.
"Given the current exceptional circumstances, we believe that we should continue to move towards our target net debt to provide the company with a guaranteed resistance to any market conditions", - said the head of the ArcelorMittal Lakshmi N. Mittal.
it is Expected that the convertible mandatory bonds will have a maturity of 3 years and will be compulsorily converted into common shares of the company at the end of maturity, unless they are converted earlier at the choice of the holders or ArcelorMittal.
the Coupon on the proposed bonds range from 5.25% to 5.75% per annum. The minimum conversion price of the mandatory convertible bonds will be equal to the reference price of the shares determined by the placement price of shares in the concurrent offering of shares and the maximum conversion price must be set in the range between 115% and 120 % of the minimum conversion price.
Family Mittal made the decision to redeem securities of the additional issue worth $ 200 million.
