U.S. Steel plans to price $700 million five-year senior notes

By Wendy Van Sickle

Columbus, Ohio, May 20 – United States Steel Corp. plans to price a $700 million offering of five-year senior secured notes (//BB-), according to a company news release issued on Wednesday.

The company plans to use proceeds of the Rule 144A and Regulation S offering to strengthen its balance sheet, to increase liquidity and for general corporate purposes.

The notes will be guaranteed by all of the company’s existing and future direct and indirect subsidiaries, other than certain excluded subsidiaries and will be secured by first-priority liens on substantially all of the company’s and the guarantors’ assets.

The Pittsburgh-based steel producer plans to use the proceeds, together with cash on hand, to tender for or redeem all of its 8 3/8% senior secured notes due 2021.

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