Arcelor Mittal gets 17 bn euro credit to restructure debt
Arcelor Mittal, the world's largest steel maker, today announced the signing of a 17 billion euro credit facility to restructure its existing debt.
This debt would be used to refinance existing credit facilities of Mittal Steel company N V and Arcelor Finance SCA, a subsidiary of Arcelor SA, a company statement said.
The credit line consists of two tranches in form of a euro 12 billion term loan amortized over a five-year period and another euro 5 billion revolving credit facility with a maturity of five years.
"The strong demand for this offering underlines the financial community's trust in Arcelor Mittal," company CFO Aditya Mittal was quoted as saying.
The new credit facility, signed with a syndicate of 26 banks was oversubscribed by around 40 per cent.
As per the arrangement, the credit facility pays an initial margin of 0.375 per cent above Libor, based on a ratings grid, it said.
Arcelor Mittal with a production capacity of about 130 million tonnes a year, represents around 10 per cent of world steel output.
This debt would be used to refinance existing credit facilities of Mittal Steel company N V and Arcelor Finance SCA, a subsidiary of Arcelor SA, a company statement said.
The credit line consists of two tranches in form of a euro 12 billion term loan amortized over a five-year period and another euro 5 billion revolving credit facility with a maturity of five years.
"The strong demand for this offering underlines the financial community's trust in Arcelor Mittal," company CFO Aditya Mittal was quoted as saying.
The new credit facility, signed with a syndicate of 26 banks was oversubscribed by around 40 per cent.
As per the arrangement, the credit facility pays an initial margin of 0.375 per cent above Libor, based on a ratings grid, it said.
Arcelor Mittal with a production capacity of about 130 million tonnes a year, represents around 10 per cent of world steel output.
posted by Daniem at 3:26 AM
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