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Mittal Steel Announces US$3.2 Billion Credit Facility

01/01/2005 - Newly formed Mittal Steel Co. NV announced that it has mandated ABN AMRO, Citigroup Global Markets Limited, Deutsche Bank AG London and HSBC Bank plc (as Mandated Lead Arrangers and Bookrunners) and CSFB and UBS Limited (as Mandated Lead Arrangers) to arrange a US$3.2 billion unsecured revolving credit facility. The credit facility has been fully underwritten by the Mandated Lead Arrangers. It is expected to launch to the market at the end of January.

Newly formed Mittal Steel Co. NV announced that it has mandated ABN AMRO, Citigroup Global Markets Limited, Deutsche Bank AG London and HSBC Bank plc (as Mandated Lead Arrangers and Bookrunners) and CSFB and UBS Limited (as Mandated Lead Arrangers) to arrange a US$3.2 billion unsecured revolving credit facility. The credit facility has been fully underwritten by the Mandated Lead Arrangers. It is expected to launch to the market at the end of January.

Mittal Steel will use part of its new credit facility to finance the cash portion of the consideration payable in connection with the proposed merger with International Steel Group Inc. (ISG).

Following completion of the proposed merger, the combined group will be the largest steel company in the world as measured by market capitalization and steel shipments. The group has pro forma total steel shipments of 43 million tons and pro forma revenues of US$22.5 billion (for the nine months ended September 30, 2004). Mittal Steel has operations in 14 countries on four continents; countries include Canada, The Czech Republic, France, Germany, Kazakhstan, Poland, South Africa and the USA.

Mittal Steel’s US$4.5 billion proposed merger with ISG is subject to approval by ISG and Mittal Steel shareholders. The transaction is expected to be completed by the end of the first quarter of 2005.

The new credit facility will be used to finance the cash portion of the consideration payable in connection with the proposed merger with International Steel Group Inc. (ISG); to refinance certain existing indebtedness of Mittal Steel and its subsidiaries; and for general corporate purposes. The new facility will have a maturity of 5 years and the margin will be based on a rating grid. Mittal Steel is currently rated BBB (positive outlook) by S&P.

Mittal Steel Co. is the world’s most global steel company. Formed from the combination of Ispat International NV and LNM Holdings NV, the company has operations in fourteen countries, on four continents. Mittal Steel encompasses all aspects of modern steelmaking, to produce a comprehensive portfolio of both flat and long steel products to meet a wide range of customer needs. It serves all the major steel consuming sectors, including automotive, appliance, machinery and construction. For the first nine months of 2004, Mittal Steel had revenues of approximately US$16 billion and steel shipments of 32 million tons.