LONDON: After its bond buyback programmes received a lukewarm response last month, ArcelorMittal today launched an offer to purchase in cash its bonds worth USD 1.5 billion, which are due to mature in June 2019.
“ArcelorMittal announces the launch of its tender offer to purchase for cash any and all of its outstanding 9.850 per cent Notes due June 1, 2019,” it said in a regulatory filing.
The outstanding principal amount of the Notes is USD 1.5 billion, the steelmaker added.
The Luxembourg-based company said the offer will expire on May 16.
“ArcelorMittal will fund the offer with existing cash resources, including the proceeds of its rights offering that closed on April 8, 2016,” it said.
The world’s largest steel maker said the offer is being made to reduce its gross debt through the early repayment of medium-term maturing bonds.
Barclays Capital, BNP Paribas, Citigroup Global Markets Limited and JP Morgan Securities have been appointed to serve as the dealer managers for the Offer, while D F King has been retained to serve as the information agent and tender agent in connection with the Offer, it added.
Last month, the firm led by billionaire L N Mittal received a lukewarm response to its offers to purchase in cash securities worth around USD 3.2 billion, maturing in 2017 and 2018.
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