Mittal Steel (NYSE:MT)
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2 Years : From Dec 2011 to Dec 2013
ArcelorMittal (MT), a global steel producer, set its three-part U.S. debt deal at $3 billion, according to a term sheet obtained by Dow Jones Newswires.
The deal features $500 million of three-year notes, $1.4 billion of five-year notes and $1.1 billion of 10-year notes. Launch terms suggest the tranches will offer respective spreads, or extra yield over Treasurys, of 3.4 percentage points, 3.7 points and 4.35 points.
The proposed terms are all 0.1 point lower than earlier pricing guidance, suggesting strong demand.
The Luxembourg company intends to use the proceeds for general corporate purposes, including to repay some debt due in 2012, which bears an interest rate of 1.71% to 1.78%. It may also pay off some debt due in 2013, which bears an interest cost of 5.375%.
The anticipated ratings are Baa3 from Moody's Investors Service, BBB-minus from Standard & Poor's, and BBB from Fitch Ratings.
The Securities and Exchange Commission-registered notes feature a change-of-control provision allowing investors to redeem the notes at 101 cents on the dollar should the company be acquired and get downgraded below investment grade. The provision safeguards investors from a leveraged buy-out.
Bank of America Merrill Lynch, Citigroup, and J.P. Morgan are lead bookrunners on the deal.
-By Patrick McGee, Dow Jones Newswires; 212-416-2382; email@example.com