ArcelorMittal will seek consents to amend 9¾% notes originally issued by Ispat Inland

By Laura Lutz

Des Moines, April 15 - ArcelorMittal Financial Services LLC announced plans for a solicitation of consents for its 9¾% senior secured notes due 2014 originally issued by Ispat Inland ULC, according to F-4 and S-4 filings with the Securities and Exchange Commission.

There is $422.5 million principal amount of the notes outstanding.

ArcelorMittal will seek consents to amend the note indenture. Among other provisions, the amendments would allow the company to re-establish a "tower" financing structure similar to that which existed when the notes were initially issued.

Specifically, ArcelorMittal would merge into ArcelorMittal USA Partnership, and newly formed subsidiaries of ArcelorMittal would guarantee the notes. The interest rate of the series Z first mortgage bonds, which secure the notes, would be raised to 1%.

The proposed amendments would require consents from holders of a majority of the notes.

Consenting holders would receive $1.25 per $1,000 principal amount of notes.

The beginning and end dates for the consent solicitation have not been set.

Citigroup Global Markets (800 558-3745 or collect 212 723-6106) will be the solicitation agent. Global Bondholder Services Corp. (866 873-5600 or 212 430-3774) will be the tabulation agent and information agent.

ArcelorMittal is a Chicago-based steel company. Formerly named Mittal Steel USA Inc., it merged with Ispat Inland Inc. on Dec. 31, 2005.

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