United States Steel Corporation Announces Pricing of Upsized Common Stock Offering

Rhea-AI Summary

U.S. Steel Corporation (NYSE: X) announced an upsized public offering of 42 million shares, raising approximately $699 million. The offering size increased from 40 million shares, with an underwriter option for an additional 6.3 million shares. The proceeds will primarily be used to redeem 35% of outstanding 2025 Senior Secured Notes and for general corporate purposes. The offering is expected to close around February 5, 2021. Morgan Stanley is the underwriter, and shares will be sold under an effective shelf registration statement.

Positive

• Upsized public offering increased to 42 million shares, raising about $699 million.
• Proceeds will be used to redeem 35% of 2025 Senior Secured Notes, reducing future interest liabilities.

Negative

• Potential dilution of existing shareholders due to new shares being issued.

United States Steel Corporation (NYSE: X) (the “company” or “U. S. Steel”) announced today the pricing of its upsized underwritten public offering of 42,000,000 shares of common stock, for gross proceeds of approximately $699 million. The size of the offering was upsized from 40,000,000 shares to 42,000,000 shares. The company has granted the underwriter a 30-day option to purchase up to 6,300,000 additional shares of common stock from the company. The offering is expected to close on or about February 5, 2021, subject to customary closing conditions.

U. S. Steel intends to use the net proceeds from the offering to redeem 35% of its outstanding 2025 Senior Secured Notes and for general corporate purposes, which may include further repayment of its outstanding indebtedness.

Morgan Stanley & Co. LLC is acting as the underwriter for the offering. The underwriter may offer the shares of common stock from time to time for sale in one or more transactions on the New York Stock Exchange, in the over-the-counter market, through negotiated transactions or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices, or at negotiated prices.

The common stock is being offered and sold pursuant to an effective automatic shelf registration statement on Form S-3 previously filed with the Securities and Exchange Commission (“SEC”). Before you invest, you should read the prospectus supplement related to this offering and accompanying prospectus in that registration statement and other documents filed with the SEC for more information about the company and this offering. You may obtain these documents free of charge by visiting the SEC’s website at www.sec.gov. Copies of the prospectus supplement and accompanying prospectus for the offering may be obtained from: Morgan Stanley & Co. LLC at 180 Varick Street, 2nd Floor, New York, New York 10014, Attn: Prospectus Department.

This press release is neither an offer to sell nor a solicitation of an offer to buy any securities, including U. S. Steel common stock, nor shall it constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Words such as, but not limited to, “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “could,” “may,” “will,” “should,” and similar expressions are intended to identify forward-looking statements. All forward-looking statements, including with respect to the offering described herein, rely on a number of assumptions, estimates and data concerning future results and events and are subject to a number of uncertainties and other factors, many of which are outside U. S. Steel’s control that could cause actual results to differ materially from those reflected in such statements. Accordingly, U. S. Steel cautions that the forward-looking statements contained herein are qualified by these and other important factors and uncertainties that could cause results to differ materially from those reflected by such statements. For more information on additional potential risk factors, please review U. S. Steel’s filings with the SEC, including, but not limited to, U. S. Steel’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K.

Founded in 1901, the United States Steel Corporation is a Fortune 250 company and leading integrated steel producer. With extensive iron ore production and an annual raw steelmaking capability of 26.2 million net tons, U. S. Steel produces high value-added steel products for the automotive, infrastructure, appliance, container, and energy industries. The company’s Best of Both^SM integrated and mini-mill technology strategy is advancing a more secure, sustainable future for U. S. Steel and its stakeholders. With renewed emphasis on innovation and customer focus, the company produces cutting-edge products such as U. S. Steel’s proprietary XG3™ advanced high-strength steel. U. S. Steel is headquartered in Pittsburgh, Pennsylvania, with world-class operations across the United States and in Central Europe. For more information, please visit www.ussteel.com.

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FAQ

What is the pricing of U.S. Steel's recent public offering?

U.S. Steel announced the pricing of its public offering at 42 million shares for gross proceeds of approximately $699 million.

When is the expected closing date for U.S. Steel's stock offering?

The offering is expected to close on or about February 5, 2021.

What will U.S. Steel do with the proceeds from its stock offering?

U.S. Steel intends to use the net proceeds to redeem 35% of its outstanding 2025 Senior Secured Notes and for general corporate purposes.

Who is the underwriter for U.S. Steel's public offering?

Morgan Stanley & Co. LLC is acting as the underwriter for the offering.

What is the size of U.S. Steel's stock offering compared to the previous amount?

The offering size was upsized from 40 million shares to 42 million shares.