ArcelorMittal increases size of bond issue to Euro 1.25 billion

26 March 2009

Following the successful placement of its convertible and non-convertible bonds,  steel giant ArcelorMittal has announced the full exercise of the greenshoe option, increasing the size of the offering to 1.25 billion euro, corresponding to 61,728,395 bonds with a principal amount of 20.25 euro per bond.

''ArcelorMittal is pleased to announce the successful placement of its Euro 1.1 billion bonds convertible and/or exchangeable into new and/or existing shares due April 1, 2014, announced earlier today,'' the group said in a website release.

"To receive such a positive response to the issue in the current economic climate is particularly pleasing, and we believe represents a strong indication of confidence in ArcelorMittal. The convertible bond brings multiple benefits to the company, enabling us to extend the maturity of our debt and diversify our debt structure, as well as further enhancing our liquidity," said Aditya Mittal, CFO of ArcelorMittal.

The principal amount of the bond issue, which has been raised from 750 million euro to 1.1 billion euro, will now go up further to a maximum of 1.25 billion euro if the over-allotment option is exercised in full by 30 March 2009.

The nominal value of each bond corresponds to Euro 20.25, providing a premium of 32 per cent above the reference price of ArcelorMittal shares on Euronext Amsterdam. The conversion / exchange ratio of the bonds will be one new or existing ArcelorMittal share per bond, subject to customary adjustment provisions.

The bonds will bear interest at 7.25 per cent payable semi-annually and will be redeemed at par on 1 April 2014. The bonds may be redeemed at the option of the issuer at any time on or after 19 April 2013 subject to certain conditions.