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ArcelorMittal fundraising brought $4 billion

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Staff writer ▼ | January 10, 2013
Steel giant ArcelorMittal got more than it expected: the company has raised $4 billion selling shares and convertible bonds.
ArcelorMittalSteel giant ArcelorMittal got more than it expected: the company has raised $4 billion selling shares and convertible bonds.


The ordinary shares offering represents an aggregate amount of USD 1.75 billion, representing approximately 104 million ordinary shares at an offering price of USD 16.75 (EUR 12.83 at a EUR/USD conversion rate of 1.3060) per ordinary share.

ArcelorMittal announced the pricing of the $2.25 billion offering of mandatorily convertible notes (MCNs). The MCNs will have a maturity of three years, will be issued at 100% of the principal amount and will be mandatorily converted into ordinary shares of ArcelorMittal at the maturity of the MCNs, unless earlier converted at the option of the holders or ArcelorMittal or upon certain specified events in accordance with the terms of the MCNs.

The MCNs will pay a coupon of 6.00% per annum, payable quarterly in arrears. The minimum conversion price of the MCNs will be equal to $16.75, corresponding to the placement price of shares in the concurrent ordinary shares offering as described above, and the maximum conversion price has been set at approximately 125% of the minimum conversion price (corresponding to $20.94).

The Mittal family participated by placing an order in the Combined Offering for an aggregate amount of $600 million, split as follows: USD 300 million of MCNs and USD 300 million of ordinary shares.

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