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ArcelorMittal's US$3B rights issue oversubscribed; US arm to enter US$1B credit facility

ArcelorMittal said April 4 that it received stronginvestor support for its US$3billion rights issue, netting a subscription rate of 126.9%.

A total of 1,229,905,208 new shares were subscribed forunder the primary subscription rights, representing 97.4% of new shares to beissued.

Oversubscription demand amounted to 372,398,986 new shares,at 11.5x the number of surplus shares available, but only the subscription of32,446,323 new shares will be satisfied.

The new shares will be admitted to trading on the Europeanstock exchanges on April 8 and on the New York Stock Exchange on April 11.

Proceeds from the rights offering are earmarked to pay downdebt and strengthen the company's balance sheet.

ArcelorMittal also said that subsidiary plans to enterinto a new, five-year revolving credit facility of up to US$1 billion forgeneral corporate purposes.

The facility, which is expected to close in the secondquarter, will be secured by inventory and certain other working capital andrelated assets of ArcelorMittal USA and some of its subsidiaries in the U.S.

Total secured debt was US$625 million, comprising 3.2% oftotal gross debt and consisting primarily of capital leases, as of Dec. 31,2015.