US Steel Corp said Monday it will offer 18 million shares of stock and $300 million convertible note due to 2014 to pay its $500 million debt after its first quarter fells in the current weak demand of crisis.
Weak customer demand for flat-rolled products, coupled with customers' efforts to reduce inventories, has resulted in very low order rates and further downward pressure on prices for our Flat-rolled and U. S. Steel Europe unit, U. S. Steel Chairman segments and CEO John P. Surma said.
J.P. Morgan Securities Inc., Morgan Stanley & Co. Incorporated and Merrill Lynch, Pierce, Fenner & Smith Incorporated are the possible investors for the common stock offering and Incorporated and Goldman, Sachs & Co. for the convertible note offering.
It also declares quarterly dividend of 5 cent per share from 25 cent per share to save about $116 million a year, and cut its capital spending to $330 million to enhance its liquidity.
As of March 31, The Company has $180 million and $475 million outstanding debt from its three-year term loan and five-year term loan.
Shares of Pittsburgh-based, US Steel Corp fell $1.32 to 4.55 percent at $27.71 in the trading.