ArcelorMittal launches offer to buy securities worth over $3bn

Steel giant ArcelorMittal today launched offers to purchase in cash securities worth around USD 3.2 billion that will mature in 2017 and 2018.

The company will fund both the bond purchases through "existing cash resources" as well as from proceeds of the USD 3 billion rights issue that closed last week, the world's biggest steelmaker said in a statement.

It added that offers are being made to "prepay, in whole or in part, certain upcoming bond maturities".

The Luxembourg-based firm announced the commencement of an "Invitation" to holders of bonds -- 1 billion euro 4.625 per cent notes due November 17, 2017 and 500 million euro 4.50 per cent notes due March 29, 2018.

It has asked the bondholders to submit offers to sell any and all of the bonds to the company for cash.

The "Invitation" will commence on April 11, 2016 and will expire on April 18, unless extended, withdrawn, terminated or amended at the sole discretion of the company, it added.

It also said that, subject to the right of the firm to extend, re-open, withdraw, terminate or amend the terms and conditions of the Invitation, ArcelorMittal may purchase for cash a principal amount of any and all Bonds validly offered for sale by Bondholders in accordance with the terms.

Concurrently with the "Invitation", ArcelorMittal also announced the launch of its tender offer to purchase for cash any and all of its outstanding 6.125 per cent notes due 2018.

The principal outstanding amount of the offer is USD 1.5 billion.

"Notes may be validly tendered at any time on or before April 18, 2016, unless extended or earlier terminated...," it added.

Tender consideration will be payable in cash, it said.

Barclays Bank PLC, BNP Paribas, Citigroup Global Markets Limited and JP Morgan Securities plc have been appointed to serve as the dealer managers for the both the transactions, while DF King has been retained to serve as the information and tender agent.