ArcelorMittal reduces net debt by US$4 billion
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ArcelorMittal S.A. /
ArcelorMittal reduces net debt by US$4 billion
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ArcelorMittal reduces net debt by US$4 billion
* US$3.0 billion capital raise
* US$1.0 billion from sale of Gestamp
* Pro forma net debt below US$12 billion
Luxembourg, 5 February, 2016 - ArcelorMittal (the "Company") today announces a
proposed[1] capital raise of US$3.0[2] billion which, alongside the sale of its
minority stake in Gestamp for approximately US$1 billion also announced today,
would reduce pro forma net debt as of 31 December 2015 by US$4 billion to below
US$12 billion.
The Company separately announces today a five-year strategic roadmap, the
ArcelorMittal Action 2020 plan, which sets out improvement plans for each of its
five business segments and aims to improve Ebitda and free cash flow
performance.
Features of the c.US$3.0 billion share capital increase, expected to be
completed in H1 2016, include:
* Capital increase by way of a rights issue for ArcelorMittal shareholders[3]
* The Mittal family has committed to take up its pro-rata entitlement
corresponding to approximately US$1.1 billion
* ArcelorMittal has entered into a standby underwriting commitment with
Goldman Sachs International, BofA Merrill Lynch and Crédit Agricole
Corporate and Investment Bank, acting as Joint Global Coordinators, pursuant
to which the Joint Global Coordinators undertook to underwrite the capital
increase for the remaining amount, subject to customary conditions.
Additionally the Company will receive approximately US$1 billion from today's
separately announced sale of its 35% shareholding in Gestamp which is expected
to be closed by the end of June 2016. ArcelorMittal will continue its supply
relationship with Gestamp through its 35% shareholding in Gonvarri, a sister
company of Gestamp.
Assuming completion of the rights issue and factoring in the Gestamp sale
proceeds, the Company's net debt at 31 December 2015 would be less than $12bn
representing 2.2x 2015 Ebitda.
Mr. Lakshmi Mittal, chairman and CEO of ArcelorMittal, commented:
"This capital raise, combined with the sale of our minority shareholding in
Gestamp, will accelerate the company's debt reduction plans and enable us to
reduce net debt to less than US$12 billion. This will help ensure that the
business is resilient in any market environment and puts ArcelorMittal in a
position of strength from which to further improve performance.
"The Company had already announced plans to reduce the cash requirements of the
business and improve Ebitda in 2016. A more detailed long-term strategic review
has now been completed, setting out the performance improvement potential for
the five year period to 2020.
"Looking ahead it is clear that those steel companies with a combination of the
right assets, the right strategy and the right balance sheet will prosper. We
are confident ArcelorMittal has this combination and that we are in a strong
position to deliver on the targets identified and cement our position as the
world's leading steel company."
The Board of Directors has proposed that an Extraordinary General Meeting will
be held to pass the resolutions necessary for the capital increase. The exact
date, expected to be in the first half of March, will be confirmed in due
course. Further details can be found in the presentation published on the
Company's website www.arcelormittal.com.
ArcelorMittal management will host a conference call for members of the
investment community to discuss these strategic initiatives on:
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Date US Eastern time London CET
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Friday February 8am 1pm 2pm
5, 2016
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The dial in numbers:
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Location Toll free dial in Local dial in numbers Participant
numbers
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UK local: 0800 051 5931 +44 (0)203 364 5807 33346616#
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France: 0800 914780 +33 1 7071 2916 33346616#
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Germany: 0800 965 6288 +49 692 7134 0801 33346616#
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Spain: 90 099 4930 +34 911 143436 33346616#
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Luxembourg: 800 26908 +352 27 86 05 07 33346616#
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US: 1 866 7192 729 +1 240 6450345 33346616#
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There will be an accompanying presentation via a live video webcast that can be
accessed here.
Forward-Looking Statements
This press release may contain forward-looking information and statements about
ArcelorMittal and its subsidiaries. These statements include financial
projections and estimates and their underlying assumptions, statements regarding
plans, objectives and expectations with respect to future operations, products
and services, and statements regarding future performance. Forward-looking
statements may be identified by the words "believe," "expect," "anticipate,"
"target" or similar expressions. Although ArcelorMittal's management believes
that the expectations reflected in such forward-looking statements are
reasonable, investors and holders of ArcelorMittal's securities are cautioned
that forward-looking information and statements are subject to numerous risks
and uncertainties, many of which are difficult to predict and generally beyond
the control of ArcelorMittal, that could cause actual results and developments
to differ materially and adversely from those expressed in, or implied or
projected by, the forward-looking information and statements. These risks and
uncertainties include those discussed or identified in the filings with the
Luxembourg supervisory authority for the financial sector (Commission de
Surveillance du Secteur Financier - CSSF) and the United States Securities and
Exchange Commission (the "SEC") made or to be made by ArcelorMittal, including
ArcelorMittal's latest Annual Report on Form 20-F filed with the SEC,
ArcelorMittal undertakes no obligation to publicly update its forward-looking
statements, whether as a result of new information, future events, or otherwise.
For readers in the European Economic Area
This press release does not constitute an offer to sell, or the solicitation of
an offer to buy or subscribe for, any securities of ArcelorMittal within the
meaning of Luxembourg law and/or the laws of any other member state of the
European Economic Area. This document does not constitute a prospectus within
the meaning of EC Directive 2003/71/EC of the European Parliament and of the
Council dated 4 November 2003, as amended (the "Prospectus Directive"), which
expression includes any relevant implementing measure in the member state
concerned, and should not be the basis for any agreement or decision to invest.
The Company has not made any final decision whether to proceed with any offering
of securities or to admit new securities to trading on a regulated market. Any
such offering or new admission will be based exclusively on a prospectus
prepared for that purpose. Further, ArcelorMittal has not authorized any offer
to the public of securities in any member state of the European Economic Area
that has implemented the Prospectus Directive, other than Luxembourg, the
Netherlands, France and Spain, (each, a "Relevant Member State"). With respect
to each Relevant Member State, no action has been undertaken or will be
undertaken to make an offer to the public of securities requiring publication of
a prospectus in any Relevant Member State. Should an offering or new admission
of subscription rights and new shares be conducted, as is currently planned, in
Luxembourg, the Netherlands, France and Spain, a securities prospectus will be
produced, which is to be published following its approval by the Luxembourg
supervisory authority for the financial sector (Commission de Surveillance du
Secteur Financier - CSSF) and after it has been passported into the Netherlands,
France and Spain subsequent to notification having been given to the competent
regulatory authorities in those jurisdictions. Any decision to purchase,
subscribe for or otherwise acquire any subscription rights or new shares of the
Company must be made only on the basis of the information in a securities
prospectus (if published in due course by the Company), which will then be
available for download on the internet site of ArcelorMittal
(www.arcelormittal.com). Copies of the prospectus will then also be readily
available upon request and free of charge at 24-26, boulevard d'Avranches, L-
1160 Luxembourg, Grand-Duchy of Luxembourg.
In each Relevant Member State this communication is only addressed to, and
directed at, qualified investors in that Relevant Member State within the
meaning of the Prospectus Directive.
This press release contains regulated information within the meaning of the
Transparency Directive 2004/109/EC and implementing laws and regulations, which
must be made publicly available pursuant to Luxembourg law.
This press release contains advertising materials in connection with the Offer
as referred to in the Market Abuse Directive 2003/6/EC and implementing laws and
regulations.
For readers in the United Kingdom
This communication is only being distributed to, and is only directed at, (i)
persons who are outside the United Kingdom or (ii) investment professionals
falling within Article 19(5) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005 (the "Order") or (iii) high net worth
companies, and other persons to whom it may lawfully be communicated, falling
within Article 49(2)(a) to (d) of the Order (all such persons together being
referred to as "relevant persons"). The subscription rights and new shares are
only available to, and any invitation, offer or agreement to subscribe for,
purchase or otherwise acquire such subscription rights or new shares will be
engaged in only with, relevant persons. Any person who is not a relevant person
should not act or rely on this document or any of its contents.
For readers in the United States
ArcelorMittal has filed a registration statement (including a prospectus) with
the United States Securities and Exchange Commission (the "SEC") for the
offering to which this communication relates. Before you invest, you should read
the prospectus in that registration statement, the supplement to that prospectus
ArcelorMittal expects to file with the SEC and other documents ArcelorMittal has
filed and will file with the SEC for more complete information about
ArcelorMittal and this offering. You may get these documents, once filed, free
of charge by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively,
ArcelorMittal, any underwriter or any dealer participating in the offering will
arrange to send you the prospectus after filing if you request it by writing or
telephoning ArcelorMittal at ArcelorMittal USA LLC, 1 South Dearborn Street,
19th Floor, Chicago, IL 60603, Attention: Ms. Lisa M. Fortuna, Manager, Investor
Relations, telephone number: (312) 899-3985.
About ArcelorMittal
ArcelorMittal is the world's leading steel and mining company, with a presence
in 60 countries and an industrial footprint in 19 countries. Guided by a
philosophy to produce safe, sustainable steel, we are the leading supplier of
quality steel in the major global steel markets including automotive,
construction, household appliances and packaging, with world-class research and
development and outstanding distribution networks.
Through our core values of sustainability, quality and leadership, we operate
responsibly with respect to the health, safety and wellbeing of our employees,
contractors and the communities in which we operate.
For us, steel is the fabric of life, as it is at the heart of the modern world
from railways to cars and washing machines. We are actively researching and
producing steel-based technologies and solutions that make many of the products
and components people use in their everyday lives more energy efficient.
We are one of the world's five largest producers of iron ore and metallurgical
coal and our mining business is an essential part of our growth strategy. With a
geographically diversified portfolio of iron ore and coal assets, we are
strategically positioned to serve our network of steel plants and the external
global market. While our steel operations are important customers, our supply to
the external market is increasing as we grow.
In 2015, ArcelorMittal had revenues of $63.6 billion and crude steel production
of 92.5 million tonnes, while own iron ore production reached 62.8 million
tonnes.
ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT),
Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona,
Bilbao, Madrid and Valencia (MTS).
For more information about ArcelorMittal please visit:
http://corporate.arcelormittal.com/
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|ArcelorMittal Corporate Communications |
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|Paul Weigh +442032142419 |
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[1] Subject to shareholder approval. An extraordinary general meeting of
shareholders will be called in this respect.
[2] As the subscription price will be denominated in euros, the capital increase
amount will correspond to the euro equivalent of $3 billion upon the rights
offering launch. The actual amount of the capital increase in USD will depend
on f/x at closing.
[3] Structured as non-statutory preferential subscription rights.
ArcelorMittal reduces net debt by US$4 billion:
http://hugin.info/154658/R/1983977/727241.pdf
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(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: ArcelorMittal S.A. via GlobeNewswire
[HUG#1983977]
Unternehmensinformation / Kurzprofil:
Datum: 05.02.2016 - 07:00 Uhr
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