By Andrea Heisinger
New York, May 13 - ArcelorMittal priced $2.25 billion unsecured notes (Baa2/BBB+/BBB+) late Wednesday in two tranches, an informed source said.
The $750 million of notes due 2015 priced at 98.931 to yield 9.25% with a spread of Treasuries plus 727.7 basis points.
The $1.5 billion of 9.85% 10-year notes sold at 97.522 to yield 10.25% with a spread of 713.4 bps over Treasuries.
Both tranches priced at a yield rather than a spread, the source said.
The notes all have make-whole call at Treasuries plus 50 bps. They feature a change-of-control put of 101%.
Bookrunners were Citigroup Global Markets, HSBC Securities and J.P. Morgan Securities.
Proceeds will be used to refinance existing debt.
The steel producer is based in Luxembourg.
| Issuer: | ArcelorMittal
|
| Issue: | Unsecured notes
|
| Amount: | $2.25 billion
|
| Bookrunners: | Citigroup Global Markets, HSBC Securities, J.P. Morgan Securities
|
| Change-of-control put: | 101%
|
| Trade date: | May 13
|
| Settlement date: | May 18
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB+
|
| Fitch: BBB+
|
|
|
| Six-year notes
|
| Amount: | $750 million
|
| Maturity: | Feb. 15, 2015
|
| Coupon: | 9%
|
| Price: | 98.931
|
| Yield: | 9.25%
|
| Spread: | Treasuries plus 727.7 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
|
|
| Ten-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | June 1, 2019
|
| Coupon: | 9.85%
|
| Price: | 97.522
|
| Yield: | 10.25%
|
| Spread: | Treasuries plus 713.4 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
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