ArcelorMittal Secures up to $1 Billion in Financing for its U.S. Operations
April 04 2016 - 3:47AM
Dow Jones News
By Alex MacDonald
LONDON-- ArcelorMittal(MT) said Monday its U.S. unit has agreed
to secure up to $1 billion in financing for its U.S. operations as
it seeks to restructure the downstream assets of its operations
there.
The steel giant, the world's largest by output, last month
agreed to sell two of its U.S. steel operations to Black Diamond
Capital Management for an undisclosed sum and earlier in the year
raised $3 billion via a rights issue to pay down debt as it
grapples with anemic steel prices stemming in part from excessive
global steel supply.
The Luxembourg-based steelmaker said its U.S. unit agreed to a
new, five-year senior secured asset-based revolving credit facility
of up to $1 billion, which is expected to close in the second
quarter of 2016.
This facility will be secured via inventory and certain other
working capital and related assets at ArcelorMittal USA and will be
used for the unit's general corporate purposes.
ArcelorMittal said it does not intend to pursue additional
secured financing beyond this single asset-based facility.
Total secured debt at the end of December was $625 million, or
3.2% of the total gross debt, and was made up primarily of capital
leases.
-Write to Alex MacDonald at alex.macdonald@wsj.com
(END) Dow Jones Newswires
April 04, 2016 03:32 ET (07:32 GMT)
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