The Hindu Business Line : ArcelorMittal plans to raise up to €1 bn to refinance debt

LONDON: ArcelorMittal said on Monday it plans to raise as much as €1 billion (about $1.4 billion) through private placement of convertible bonds to refinance its debt.

“ArcelorMittal ... is launching a €750 million convertible bond private placement as part of its strategy to diversify its sources of funding and to lengthen its debt maturity profile,” the NRI billionaire L N Mittal-led firm said in a statement.

The company said it may increase the “aggregate principal amount of the issue” launched on Monday (€750 million) by €120 million and could further hike it by additional 15 per cent.

In case, the bond option is increased by another 15 per cent, it would amount to €130 million, taking the total sum to be raised to €1 billion.

The proceeds of the bonds will be used for refinancing purposes, the statement said, adding that there will be a 90-day lock-up period on issuances or sales of shares or equity-linked securities.

Giving details about the bond, the statement said, it would be exchangeable for new or existing shares of the firm and have a maturity date of April 3, 2014. The bonds will be exchangeable for existing shares of ArcelorMittal and or cash as from March 13 , 2009, it said. - PTI

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