By Andrea Heisinger
New York, Aug. 2 - ArcelorMittal sold $2.5 billion of notes (Baa3/BBB/BBB) in three tranches late on Monday, a market source close to the deal said.
The deal was originally announced in two tranches, according to a 424B5 filing with the Securities and Exchange Commission, with a reopening of 30-year bonds added.
A $1 billion tranche of 3.75% five-year notes sold at 99.123 to yield 3.945% with a spread of Treasuries plus 230 basis points. The notes were talked in the 235 bps area and priced at the tight end of that spread talk.
The $1 billion tranche of 5.25% 10-year notes priced at 99.459 to yield 5.452% with a spread of 248 bps over Treasuries. Guidance was in the 255 bps area.
A third tranche was a reopening of 7% notes due Oct. 15, 2039 to add $500 million. The notes priced at 104.943 to yield 6.622% with a spread of Treasuries plus 255 bps. Talk was in the 260 bps area.
Total issuance for these reopened bonds is $1.5 billion, including $1 billion priced on Oct. 1, 2009 at 345.2 bps over Treasuries.
All the notes feature a change-of-control put of 101%.
Bank of America Merrill Lynch, Citigroup Global Markets, J.P. Morgan Securities and Morgan Stanley & Co. Inc. ran the books.
Proceeds are going to refinance existing debt.
The steel producer is based in Luxembourg.
| Issuer: | ArcelorMittal
|
| Issue: | Notes
|
| Amount: | $2.5 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Citigroup Global Markets, J.P. Morgan Securities, Morgan Stanley & Co. Inc.
|
| Change-of-control put: | 101%
|
| Trade date: | Aug. 2
|
| Settlement date: | Aug. 5
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | Aug. 5, 2015
|
| Coupon: | 3.75%
|
| Price: | 99.123
|
| Yield: | 3.945%
|
| Spread: | Treasuries plus 230 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Price talk: | 235 bps area
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | Aug. 5, 2020
|
| Coupon: | 5.25%
|
| Price: | 99.459
|
| Yield: | 5.452%
|
| Spread: | Treasuries plus 248 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
| Price talk: | 255 bps area
|
|
|
| Bonds due 2039
|
| Amount: | $500 million
|
| Maturity: | Oct. 15, 2039
|
| Coupon: | 7%
|
| Price: | 104.943
|
| Yield: | 6.622%
|
| Spread: | Treasuries plus 255 bps
|
| Call: | Non-callable
|
| Price talk: | 260 bps area
|
| Total issuance: | $1.5 billion, including $1 billion priced on Oct. 1, 2009 at 345.2 bps
|
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