Steel Producers

Junk-Rated ArcelorMittal Raises Surprise $4 Billion

Lakshmi Mittal
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Steelmaker ArcelorMittal raised a bigger-than-expected $4 billion in a share and convertible notes offering, it said on Thursday, to fix its debt-laden balance sheet.

The world's biggest steel producer, which has had its credit rating cut to "junk" status, had forecast that the offer would raise $3.5 billion.

It issued $2.25 billion in convertible notes at a 6 percent yearly coupon, against a 5.875 percent to 6.375 percent range it gave when it announced the offering on Wednesday.

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That compares with $1.75 billion it raised by selling shares at $16.75 each, a 4.4 percent discount to the price they closed at in the United States on Tuesday, the day before the offer was announced.

The Luxembourg-based group has stepped up its debt-cutting efforts since Standard & Poor's became the first credit agency to cut the group's rating to junk in August.