By Andrea Heisinger
New York, Feb. 23 - ArcelorMittal priced $3 billion of notes (Baa3/BBB-/BBB) in three tranches on Thursday, a source who worked on the trade said.
The $500 million of 3.75% three-year paper priced at 99.785 to yield 3.827% with a spread of Treasuries plus 340 basis points. The notes priced tighter than guidance, which was in the 350 bps area.
There was also a $1.4 billion tranche of 4.5% five-year notes sold at 99.691 to yield 4.57% with a spread of Treasuries plus 370 bps. The spread was tighter than talk, which was in the 380 bps area.
A $1.1 billion tranche of 6.25% 10-year notes priced at 99.284 to yield 6.348% with a spread of Treasuries plus 435 bps. The bonds also were sold tighter than talk, which was in the 445 bps area.
All of the notes have a make-whole call at Treasuries plus 50 bps and feature a change-of-control put at 101%.
Bank of America Merrill Lynch, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were the bookrunners.
Co-managers were Commerzbank, Credit Agricole Securities (USA) Inc., HSBC Securities (USA) Inc., RBS Securities Inc., Santander Investment Securities Inc. and Societe Generale.
Proceeds will be used for general corporate purposes and to repay debt.
ArcelorMittal was last in the market with a $3 billion offering of notes in three parts on Feb. 28, 2011. The 3.75% five-year notes from that deal were priced at 170 bps over Treasuries, while a 5.5% 10-year note was priced at 215 bps over Treasuries.
The steel and mining company is based in Luxembourg.
| Issuer: | ArcelorMittal
|
| Issue: | Notes
|
| Amount: | $3 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC
|
| Co-managers: | Commerzbank, Credit Agricole Securities (USA) Inc., HSBC Securities (USA) Inc., RBS Securities Inc., Santander Investment Securities Inc., Societe Generale
|
| Change-of-control put: | 101%
|
| Distribution: | Off shelf
|
| Trade date: | Feb. 23
|
| Settlement date: | Feb. 28
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB
|
|
|
| Three-year notes
|
| Amount: | $500 million
|
| Maturity: | Feb. 25, 2015
|
| Coupon: | 3.75%
|
| Price: | 99.785
|
| Yield: | 3.827%
|
| Spread: | Treasuries plus 340 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | 350 bps area
|
|
|
| Five-year notes
|
| Amount: | $1.4 billion
|
| Maturity: | Feb. 25, 2017
|
| Coupon: | 4.5%
|
| Price: | 99.691
|
| Yield: | 4.57%
|
| Spread: | Treasuries plus 370 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | 380 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.1 billion
|
| Maturity: | Feb. 25, 2022
|
| Coupon: | 6.25%
|
| Price: | 99.284
|
| Yield: | 6.348%
|
| Spread: | Treasuries plus 435 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | 445 bps area
|
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