ArcelorMittal plans to raise up to $3.75 bn

LONDON: The world's largest steel maker, ArcelorMittal, which swung into loss in the first quarter, on Wednesday said it will raise up to $3.75 billion through issue of securities as part of efforts to strengthen its balance sheet.

The Lakshmi Mittal-led company would be raising $3 billion by offering equities and convertible senior notes. Further, the issue would have an option to purchase additional notes worth $75 million, it said in a statement.

ArcelorMittal said it intends to offer "shares of its common stock and convertible senior notes for a total combined amount of approximately $3 billion, as part of its strategy to accelerate debt reduction and to further strengthen its balance sheet".

According to the statement, the firm intends to grant "underwriters a 30-day option to purchase up to an additional $75 million of convertible senior notes".

Convertible senior notes are expected to be issued in a minimal principal amount of $500 million.

ArcelorMittal posted loss of $1.1 billion for the first quarter ended March 2009. In the year-ago period, it had a net income of $2.4 billion.

The statement said that Mittal family would subscribe for "at least 10 per cent of the offering of common stock".