ArcelorMittal's $1.5 billion bond buyback gets lukewarm response

LONDON: Steel giant ArcelorMittal's $1.5 billion offer to purchase in cash bonds worth $1.5 billion, which are due to mature in June 2019, received a lukewarm response.

Last week, the Luxembourg-based steelmaker had launched an offer to purchase any and all of its outstanding 9.850 per cent Notes due June 1, 2019. The outstanding principal amount of the Notes is $1.5 billion.

The offer expired yesterday.

In a regulatory filing today, the firm said the principal amount tendered for the Notes was about $410.65 million.

The world's largest steel maker had said the offer was made to reduce its gross debt through the early repayment of medium-term maturing bonds.

Barclays Capital, BNP Paribas, Citigroup Global Markets Limited and JP Morgan Securities served as the deal managers for the offer, while D F King served as the information agent and tender agent in connection with the offer.

Last month, the firm led by billionaire L N Mittal received a lukewarm response to its offers to purchase in cash securities worth around $3.2 billion, maturing in 2017 and 2018.

Earlier this month, ArcelorMittal reported a narrowing of its net loss to $416 million in the quarter ended March 31, but reported a rise in debt to $17.3 billion.

The firm had posted a net loss of $728 million in the year-ago period and $6.7 billion for October-December.

Net sales fell by 22 per cent to $13.4 billion in January-March from $17.1 billion last year.