Steel Mills

U.S. Steel Gets Financing in Shape for Growth Initiatives

Written by Sandy Williams


U.S. Steel announced that it has completed $1.1 billion of financing activity that will support its previously announced growth projects.

“The closing of these financing activities marks another successful step in the execution of our ‘best of both’ strategy,” said President and CEO David B. Burritt. “I am thankful for the strong support from our investors and bank groups of our goal to create a differentiated, world-competitive company.”

U.S. Steel has increased and extended its revolving credit facility to $2 billion, issued $350 million in senior convertible notes and completed the offering of $275 million of 30-year environmental revenue bonds at a coupon of 5.75 percent

About $275 million in proceeds from the 30-year bond will be used to finance or refinance the acquisition, construction, equipping and installation of certain solid waste disposal facilities and the electric arc furnace and other equipment at U.S. Steel Fairfield Works.

Net proceeds from the convertible notes will be used for general corporate purposes and planned strategic investments and capital expenditures. One of those investments is the recent purchase of 49.9 percent of Big River Steel.

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