 |
|
Cash chase |
Luxembourg/New Delhi, Sept. 26 (PTI): ArcelorMittal, the world’s largest steel maker, plans to raise $650 million through the issue of securities to meet general financing needs and retire debt.
“The securities have no fixed maturity date. They bear interest at 8.75 per cent per annum, subject to the right of the company to defer interest payments,” ArcelorMittal said in a statement.
ArcelorMittal has an annual steel production capacity of around 92 million tonnes.
The securities will be accounted for as equities in the company’s consolidated financial statements, it said, adding the initial coupon rate will be reset periodically over the life of the securities.
The reset of the rate will be done in the fifth year and subsequently every five years thereafter.
“The proceeds of the issue will be used for the general financing purposes of ArcelorMittal and its consolidated subsidiaries, including the repayment of existing debt,” the statement said.
There will be a step up in interest of 25 basis points on the second reset date and a subsequent step up of 75 basis points 15 years later.
ArcelorMittal said it would be entitled to buy back the securities in the fifth and tenth year and on subsequent interest payment dates.
“The company will also have the option to redeem the securities upon specific accounting, tax, rating agency or change of control events,” the statement said.
|
