By Cristal Cody
Chicago, Nov. 22 – ArcelorMittal priced $2.2 billion of notes (Baa3/BBB-) in a two-tranche offering on Monday, according to an FWP filed with the Securities and Exchange Commission and additional details from a market source.
The first tranche consisted of $1.2 billion of five-year notes with a 6.55% coupon. Pricing came at 99.908 for a 6.572% yield, or at Treasuries plus 255 basis points. Price talk was in the Treasuries plus 275 bps area.
The second tranche priced as $1 billion of 6.8% 10-year notes at 99.371 to yield 6.888%, or at Treasuries plus 305 bps, versus spread talk in the 325 bps area.
The first tranche comes with a make-whole call option at Treasuries plus 40 bps until one month before the maturity date when the notes are callable at par. Similarly, the second tranche has a make-whole call at Treasuries plus 50 bps until the par call date three months before the maturity date.
BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Mizuho Securities USA LLC are global coordinators.
Commerz Markets LLC, Credit Agricole Securities (USA) Inc., HSBC Securities (USA) Inc., RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc. and UniCredit Capital Markets LLC are joint bookrunners.
Proceeds will be used for general corporate purposes. Proceeds over $400 million will be used to reduce borrowings on the company’s bridge facility used for the acquisition of Companhia Siderurgica do Pecem.
ArcelorMittal is a Luxembourg-based steel producer and mining company.
| Issuer: | ArcelorMittal
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| Amount: | $2.2 billion
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| Issue: | Notes
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| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC (global coordinators), Commerz Markets LLC, Credit Agricole Securities (USA) Inc., HSBC Securities (USA) Inc., RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc. and UniCredit Capital Markets LLC
|
| Trustee: | Wilmington Trust, NA
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| Counsel to issuer: | Elvinger Hoss Prussen and Cleary Gottlieb Steen & Hamilton LLP
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| Counsel to underwriters: | Shearman & Sterling (London) LLP
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| Change of control: | At 101
|
| Trade date: | Nov. 21
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| Settlement date: | Nov. 29
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| Ratings: | Moody’s: Baa3
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| S&P: BBB-
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| Distribution: | SEC registered
|
|
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| 2027 notes
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| Amount: | $1.2 billion
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| Maturity: | Nov. 29, 2027
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| Coupon: | 6.55%
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| Price: | 99.908
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| Yield: | 6.572%
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| Spread: | Treasuries plus 255 bps
|
| Call features: | Make-whole call at Treasuries plus 40 bps until Oct. 29, 2027; thereafter at par
|
| Price talk: | Treasuries plus 275 bps area
|
| Cusip: | 03938LBE3
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|
|
| 2032 notes
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| Amount: | $1 billion
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| Maturity: | Nov. 29, 2032
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| Coupon: | 6.8%
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| Price: | 99.371
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| Yield: | 6.888%
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| Spread: | Treasuries plus 305 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Aug. 29, 2032; thereafter at par
|
| Price talk: | Treasuries plus 325 bps area
|
| Cusip: | 03938LBF0
|
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