US Steel plans to place bonds for $ 300 million
US Steel, the second largest steel company in the United States, plans to sell US $ 300 million in convertible bonds following the acquisition of a large stake in Big River Steel in northeast Arkansas.
The Pittsburgh-based steel company, one of Northwest Indiana's largest employers, is making a private offering to institutional investors in debt securities that mature on November 1, 2026 and have equal payment rights with its senior debt. The company will then pay the bondholders US Steel shares, in cash or a combination.
"US Steel intends to use the net proceeds from the sale of bonds for general corporate purposes, including, but not limited to, previously announced strategic investments and capital expenditures," the company said in a statement.
Earlier, US Steel announced the acquisition of a 49.9% stake in the Big River Steel mini-mill in northeast Arkansas. She also got the opportunity to buy out the remaining 50.1% of the high-tech enterprise at a market price within four years.