Arab Today, arab today arcelormittal plans to raise 35bn
Last Updated : GMT 22:04:43
Arab Today, arab today
Arab Today, arab today

ArcelorMittal plans to raise $3.5bn

Arab Today, arab today

Arab Today, arab today ArcelorMittal plans to raise $3.5bn

Paris - AFP

Top global steel producer ArcelorMittal announced Wednesday plans for a stock and subordinated notes offer to raise $3.5 billion (2.7 billion euros) to reduce its massive debt that has worried investors. \"ArcelorMittal intends to use the net proceeds from the combined offering to reduce existing indebtedness,\" the company said in a statement. The announcement initially sent ArcelorMittal shares down more than five percent in afternoon trading on the Paris stock exchange. They clawed back some ground later however to stand down 2.42 percent at 13.09 euros in afternoon trading while the overall Paris market was up 0.36 percent. \"The market was taken a bit by surprise by the announcement, all the more so given the amount is not negligible,\" said one Paris trader. The offering of common stock and mandatorily convertible subordinated notes would be made in the United States, said ArcelorMittal, and reserved the right to adjust the proportions. \"Deleveraging remains a priority for ArcelorMittal to retain strategic flexibility,\" said the company. It said the offering plus other measures should enable the company to reduce its net debt to approximately $17 billion by the end of June, from about $22 billion at the end of 2012. The three top ratings agency\'s stripped ArcelorMittal of an investor-grade rating at the end of last year citing the company\'s massive debt amid sluggish global steel sales. \"We have consistently said that reducing net debt is a priority for the company,\" chief executive Lakshmi Mittal was quoted as saying. \"This transaction, supplemented by proceeds from ongoing asset disposals, the announced reduction in dividends and continued cost saving initiatives, will significantly lower our net debt and accelerate the achievement of a medium term net debt target of $15 billion.\" Existing shareholders will receive a preferential allocation of new shares, and the Mittal family which controls the company has indicated its intention to participate to a total extent of $600 million. The three-year notes will carry average interest of 5.875 percent to 6.375 percent. They will be mandatorily convertible in ArcelorMittal shares at their expiration or earlier under certain circumstances. A successful placement of the stock and notes should be enough for the company to meet the goal of reducing its debt by $5 billion in the first half of the year given recently announced sales and expected earnings. ArcelorMittal is due to receive $1.1 billion in the first half of this year from the sale of a 15 percent stake in its iron ore mines in Canada to Asian rivals in a deal announced earlier this month. It has also announced the sale of its 50 percent stake in South African mining group Kalagadi Manganese for $447 million. The company has previously said it would cut dividends to $0.20 per share from $1.20. ArcelorMittal also confirmed its guidance of full year 2012 EBITDA operating profit of approximately $7 billion. Moody\'s rating agency welcomed the share offering, estimating that it along with asset sales would help the company bring its debt to operating profit ratio back into line with conditions under its borrowing agreements. \"However, Moody\'s believes the company needs to reduce debt further in order to support the Ba1 rating and will maintain its negative rating outlook until that happens and the global economy and steel market conditions begin to improve,\" it said in a statement. ArcelorMittal said last month that European steel sales had plunged by 27 percent since the global economic crisis began and announced a $4.3-billion write down on the value of its European operations.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today arcelormittal plans to raise 35bn Arab Today, arab today arcelormittal plans to raise 35bn

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today arcelormittal plans to raise 35bn Arab Today, arab today arcelormittal plans to raise 35bn

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today Barcelona through George Orwell’s eyes

GMT 13:44 2017 Friday ,20 October

Barcelona through George Orwell’s eyes
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Tillerson heads to Gulf, downbeat

GMT 09:23 2017 Friday ,20 October

Tillerson heads to Gulf, downbeat
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Sweden to get biggest car factory

GMT 14:10 2017 Friday ,20 October

Sweden to get biggest car factory
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Actress Shery Adel happy for Egypt’s qualification

GMT 08:57 2017 Wednesday ,18 October

Actress Shery Adel happy for Egypt’s qualification
Arab Today, arab today Massacre fears spark race

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 07:47 2017 Tuesday ,17 October

Hussein Fahmy happy for honoring in festival

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 06:43 2017 Wednesday ,18 October

Fake dentists ply brisk trade

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday