World’s leading steel company, ArcelorMittal, said Tuesday that the initial 750 Million Euro ($1 billion) bond could increase up to 1.25 billion euro.
The offering may increase if the over-allotment option is granted by CALYON and Société Générale Corporate & Investment Banking acting as Joint Lead-Managers and Joint Bookrunners.
The company said the launch it’s of convertible bond sale did not aim to boost its capital source by issuing shares but to lengthen its debt maturity on March 31, 2009 as it faces economic difficulties.
In 2008, ArcelorMittal reported totaled revenues of $124.9 billion and crude steel production of 103.3 million tonnes, representing approximately 10 per cent of world steel output.
Adding that, the Company also reported recently cutting of jobs, lay off temporary staff and close plant to reduce output, has net debt of $26.5 billion in 2008, and is still trying to pay off $10 billion in debt by the end of this year.
Shares of today increase 0.84 Cents to4.09 percent at $21.37 in the New York stock exchange early trading.