World's largest steel producer ArcelorMittal on Tuesday said it plans to raise as much as one billion euro (about $1.4 billion) through private placement of convertible bonds to refinance its debt.
"ArcelorMittal ... is launching a 750 million euro convertible bond private placement as part of its strategy to diversify its sources of funding and to lengthen its debt maturity profile," the NRI billionaire L N Mittal-led firm said in a statement.
The company said it may increase the "aggregate principal amount of the issue" launched today (750 million euro) by 120 million euro and could further hike it by additional 15 per cent.
In case, the bond option is increased by another 15 per cent, it would amount to 130 million euro, taking the total sum to be raised to one billion euro.
The proceeds of the bonds will be used for refinancing purposes, the statement said, adding that there will be a 90-day lock-up period on issuances or sales of shares or equity-linked securities.
Giving details about the bond, the statement said, it would be exchangeable for new or existing shares of the firm and have a maturity date of April 3, 2014. The bonds will be exchangeable for existing shares of ArcelorMittal and or cash as from March 13, 2009, it said.
Giving details about the bond, the statement said, it would be exchangeable for new or existing shares of the firm and have a maturity date of April 3, 2014. The bonds will be exchangeable for existing shares of ArcelorMittal and or cash as from March 13, 2009, it said.