US Steel out to market with $500M unsecured bond offering

U.S. Steel Corp. is out to market with a $500 million, eight-year (non-call three) unsecured bond offering. An investor call is scheduled for today at 10:30 a.m. ET, for pricing thereafter. Credit Suisse (lead left), ING, BofA Securities, Barclays, Citi, Goldman Sachs, J.P. Morgan, Truist and Wells Fargo are bookrunners.

Proceeds from the SEC-registered bonds, together with cash on hand, will be used to redeem the remaining $687 million of the borrower's secured notes due 2025.

The company was last seen in the market in May 2020 with $1 billion of 12% secured bonds due June 2025, which priced at 94.665 to yield 13.5%. The deal was upsized from $700 million during marketing. The bonds closed on Feb. 5 at 116.125 yielding 3.78%, according to S&P Global Market Intelligence.

U.S. Steel produces and sells flat-rolled and tubular steel products, primarily in North America and Europe. The company has existing unsecured bond maturities in 2026 and 2027.