ArcelorMittal revises talk on upsized $2.25 billion mandatory convertibles to yield 6%, up 25%

By Rebecca Melvin

New York, Jan. 9 - ArcelorMittal SA upsized its offering of mandatory convertible subordinated notes to $2.25 billion from an initially talked $1.75 billion and tightened price talk for a yield of 6% and an initial conversion premium of 25%. The $25-par notes are seen pricing late Wednesday, according to market sources.

Initially the registered, off-the-shelf deal was talked with a 5.875% to 6.375% coupon and 20% to 25% premium.

ArcelorMittal also plans to price an offering of ordinary shares for a total capital raise of about $3.5 billion.

Bookrunners of the offerings are Goldman Sachs & Co., Bank of America Merrill Lynch, Credit Agricole Corporate and Investment Bank and Deutsche Bank AG, London branch.

The mandatory convertibles have a three-year maturity and will be referenced to the price of the concurrent equity offering placement.

Proceeds from the combined offering will be used to reduce existing debt.

ArcelorMittal is a Luxembourg-based steel and mining company.

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