By Alex MacDonald

 

LONDON-- ArcelorMittal(MT) said Monday its U.S. unit has agreed to secure up to $1 billion in financing for its U.S. operations as it seeks to restructure the downstream assets of its operations there.

The steel giant, the world's largest by output, last month agreed to sell two of its U.S. steel operations to Black Diamond Capital Management for an undisclosed sum and earlier in the year raised $3 billion via a rights issue to pay down debt as it grapples with anemic steel prices stemming in part from excessive global steel supply.

The Luxembourg-based steelmaker said its U.S. unit agreed to a new, five-year senior secured asset-based revolving credit facility of up to $1 billion, which is expected to close in the second quarter of 2016.

This facility will be secured via inventory and certain other working capital and related assets at ArcelorMittal USA and will be used for the unit's general corporate purposes.

ArcelorMittal said it does not intend to pursue additional secured financing beyond this single asset-based facility.

Total secured debt at the end of December was $625 million, or 3.2% of the total gross debt, and was made up primarily of capital leases.

 

-Write to Alex MacDonald at alex.macdonald@wsj.com

 

(END) Dow Jones Newswires

April 04, 2016 03:32 ET (07:32 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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