ArcelorMittal to Offer Common Stock and MCNs in Effort to Reduce Debt

ArcelorMittal recently announced it expects to have EBITDA of $7 billion and debt of $22 billion for the year ending 2012.

The MCNs will have a maturity of 3 years, will be issued at 100 percent of the principal amount and will be mandatorily converted into ordinary shares of ArcelorMittal at the maturity of the MCNs. The MCNs are expected to pay a coupon in the range between 5.875 percent and 6.375 percent per annum, payable quarterly in arrears. The minimum conversion will be at the share reference price and the maximum conversion in the range of 120 percent to 125 percent.

Goldman Sachs & Co will be the sole global coordinator of the Combined Offering, and Goldman Sachs & Co, BofA Merrill Lynch , Credit Agricole Corporate and Investment Bank, and Deutsche Bank AG, London Branch will serve as joint book runners of the Combined Offering.

Current shareholders will be offered preferential allocations of the common stock. The Mittal family has indicated they will purchase $600 million shares in the combined offering. There will be a 180 day lock-up period on the issue or sale of shares and securities.

The offering is pursuant to registration with the SEC. The final terms of the offering are expected to be announced January 9, 2013 and settlement of the common stock offering should occur on or around January 14, 2013. ArcelorMittal is applying to list the MCNs on the New York Stock Exchange and expects to begin trading within 30 days after the MCNs are first issued.