By Paul Deckelman
New York, July 6 – ArcelorMittal has issued CHF 225 million of 2.5% five-year notes (Ba1/BB/BB+) at par under its €6 billion wholesale euro medium-term notes program, the company said.
A high-yield primary market source said the notes were brought to market via bookrunners Credit Suisse and Deutsche Bank, with an original CFH 200 million offering upsized to CHF 225 million.
The notes priced on June 25 and settled on July 3.
The market source opined that the Swiss franc-denominated segment of the high-yield market “is very much a microcosm – you’ve got a very specific type of buyers of the paper.”
“Whenever you bring a high-yield name to the Swiss franc market, you are selling on name recognition,” he continued – although Luxembourg-based steelmaking giant Arcelor had not done a Swiss franc issuance before, it was well-known to the market participants for its previous euro- and dollar-denominated issuances, including its $1 billion two-part dollar-denominated drive-by megadeal of five- and 10-year notes that priced at par back on May 27.
He called the pricing “a very good outcome, because as you can see these days, especially in high yield, you’re [usually] looking at quite heftier concession numbers.”
He said that around 90% of the eventual buyers were retail accounts, attracted by the name recognition factor.
ArcelorMittal said that the proceeds will be used to repay or prepay existing debt.
| Issuer: | ArcelorMittal
|
| Amount: | CHF 225 million, increased from CHF 200 million
|
| Maturity: | July 3, 2020
|
| Bookrunners: | Credit Suisse, Deutsche Bank
|
| Coupon: | 2.5%
|
| Price: | Par
|
| Yield: | 2.5%
|
| Coupon payment: | Annual
|
| Pricing date: | June 25
|
| Settlement date: | July 3
|
| Ratings: | Moody’s: Ba1
|
| Standard & Poor’s: BB
|
| Fitch: BB+
|
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