ArcelorMittal to raise $3.5 billion to cut debt




Giant steelmaker ArcelorMittal will issue $3.5 billion of shares and convertible notes to reduce debt,

Reuters reported.

The company’s credit rating has dropped to “junk” status.

The company expects the move will help reduce its net debt to about $17 billion by the end of June from about $22 billion at the end of 2012, the Reuters article said. But credit rating agency Moody’s said the plan would not change ArcelorMittal’s rating, the Reuters report added.

According to Reuters, CFO Aditya Mittal said in a conference call that because of the issue, the company would not need to shed assets. Mittal confirmed that ArcelorMittal had bid for assets being sold by ThyssenKrupp but said this would not compromise the company’s plan to reduce debt.

According to

a Bloomberg report,

CEO Lakshmi Mittal said in a statement, “We have consistently said that reducing net debt is a priority for the company.” (Sources: Reuters, Jan. 9, 2013; Bloomberg, Jan. 9, 2013.)

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