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ArcelorMittal Completes Consent Solicitation
05/23/2008 - ArcelorMittal announces the successful completion of its consent solicitation for several proposed amendments by its indirect wholly owned subsidiary, ArcelorMittal Financial Services LLC.
ArcelorMittal’s indirect wholly owned subsidiary, ArcelorMittal Financial Services LLC, has successfully completed its consent solicitation for proposed amendments to certain provisions of
- The Indenture dated March 25, 2004, as amended (the Indenture), governing its outstanding $422.5 million aggregate principal amount of 9¾ percent Senior Secured Notes Due 2014 (the Notes), which are secured by $422.5 million aggregate principal amount of Series Z First Mortgage Bonds of ArcelorMittal USA Inc.
- The First Mortgage dated April 1, 1928, as amended, governing the First Mortgage Bonds.
- The Security Agreement, dated March 25, 2004, entered into in connection with the issuance of the Notes.
As of the expiration of the consent solicitation on Wednesday, May 21, 2008, ArcelorMittal Financial Services had received a sufficient quantity of the requisite consents from the holders of outstanding Notes to approve the Proposed Amendments. On May 21, 2008, in connection with the solicitation of consents, ArcelorMittal Financial Services executed a supplemental indenture amending the terms of the Indenture. The Supplemental Indenture was entered into by the ArcelorMittal Financial Services, ArcelorMittal USA Partnership, the Guarantors (as defined therein) and LaSalle Bank National Association, as Trustee.
ArcelorMittal Financial Services will pay to each Notes holder who delivered a valid and unrevoked consent (prior to expiration) a one-time cash payment of $1.25 for each $1,000 principal amount of Notes in respect of which a valid and unrevoked consent was delivered. This payment is expected to be made on May 22, 2008.
The company noted that the amendments are binding on all holders, including non-consenting holders of Notes.
ArcelorMittal is the world's largest and most global steel company, with 310,000 employees in more than 60 countries. The company leads a number of major global markets, with leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding distribution networks. An industrial presence in 28 European, Asian, African and American countries exposes the company to key steel markets, from emerging to mature, positions it will be looking to develop in the high-growth Chinese and Indian markets.
ArcelorMittal’s key financials for 2007 show revenues of USD 105.2 billion, with a crude steel production of 116 million tonnes, representing around 10% of world steel output.
ArcelorMittal Financial Services LLC is a limited liability company that was recently formed under the laws of Delaware and is an indirect wholly owned subsidiary of ArcelorMittal. ArcelorMittal Financial Services LLC is a limited purpose finance company and, except for the First Mortgage Bonds and $90 million of Series A 8% Preferred Stock of ArcelorMittal USA Inc., ArcelorMittal Financial Services LLC has no material assets or liabilities.
