ArcelorMittal determines final price for its previously announced repurchases of Mandatorily Convertible Subordinated Notes
On December 22, 2021, ArcelorMittal announced the completion of its repurchase of approximately US$395 million in principal of its 5.50% Mandatorily Convertible Subordinated Notes due 2023. The final repurchase price totals US$1.196 billion, closing on December 23, 2021. This repurchase will prevent the issuance of roughly 36.6 million common shares at maturity, effectively cancelling the Notes. After this transaction, approximately US$608 million of the Notes will remain outstanding, part of ArcelorMittal's ongoing capital return strategy.
- Repurchasing US$395 million in Notes supports shareholder value by preventing dilution from share conversion.
- The cancellation of the Notes enhances EPS potential for existing shareholders.
- The high repurchase price of US$1.196 billion may strain capital resources.
- Approximately US$608 million in Notes remain outstanding, indicating potential future financial obligations.
THIS ANNOUNCEMENT IS FOR INFORMATION ONLY AND IS NOT AN OFFER TO PURCHASE OR A SOLICITATION OF OFFERS TO SELL ANY SECURITIES.
22 December 2021, 22:50 CET
ArcelorMittal (the ‘Company’ or ‘ArcelorMittal’) announced today that it has determined the final repurchase price for its previously announced repurchases of certain of its
As previously announced on 13 December 2021, ArcelorMittal has entered into separate, privately negotiated agreements to repurchase approximately US
The repurchase of this aggregate principal amount of Notes is equivalent to repurchasing approximately 36.6 million shares of ArcelorMittal common stock that would otherwise be issuable at maturity under the Notes (at the minimum conversion ratio). Pursuant to the purchase agreements the Notes will be cancelled and therefore the repurchased Notes will not convert into common shares of the Company.
Following completion (subject to customary conditions) of the repurchases, approximately US
This transaction is a further step in the Company’s ongoing capital return program.
Citigroup Global Markets Inc. is acting as the exclusive agent in connection with the transaction.
ENDS
About ArcelorMittal
ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and primary steelmaking facilities in 17 countries. In 2020, ArcelorMittal had revenues of
Our goal is to help build a better world with smarter steels. Steels made using innovative processes which use less energy, emit significantly less carbon and reduce costs. Steels that are cleaner, stronger and reusable. Steels for electric vehicles and renewable energy infrastructure that will support societies as they transform through this century. With steel at our core, our inventive people and an entrepreneurial culture at heart, we will support the world in making that change. This is what we believe it takes to be the steel company of the future.
ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS). For more information about ArcelorMittal please visit: http://corporate.arcelormittal.com/.
Forward-Looking Statements
This document may contain forward-looking information and statements about ArcelorMittal and its subsidiaries. These statements include financial projections and estimates and their underlying assumptions, statements regarding the expected closing of the repurchases, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Forward-looking statements may be identified by the words “believe”, “expect”, “anticipate”, “target” or similar expressions. Although ArcelorMittal’s management believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of ArcelorMittal’s securities are cautioned that forward-looking information and statements are subject to numerous risks and uncertainties, many of which are difficult to predict and generally beyond the control of ArcelorMittal, that could cause actual results and developments to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the filings with the Luxembourg Stock Market Authority for the Financial Markets (Commission de Surveillance du Secteur Financier) and the United States Securities and Exchange Commission (the “SEC”) made or to be made by ArcelorMittal, including ArcelorMittal’s latest Annual Report on Form 20-F on file with the SEC. ArcelorMittal undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise.
| Contact information ArcelorMittal Investor Relations | |
| General | +44 207 543 1128 |
| Retail | +44 203 214 2893 |
| SRI | +44 203 214 2801 |
| Bonds/Credit | +33 1 71 92 1026 investor.relations@arcelormittal.com |
| Contact information ArcelorMittal Corporate Communications | |
| Paul Weigh Tel E-mail: | +44 20 3214 2419 press@arcelormittal.com |
FAQ
What is the purpose of ArcelorMittal's recent repurchase of Notes?
What amount did ArcelorMittal pay for the repurchase of its Notes?
How many shares could have been issued if ArcelorMittal did not repurchase the Notes?
When will the repurchase transactions close?
How much of the Notes will remain outstanding after the repurchase?
