U.S. Steel to redeem some 10¾% debentures with stock sale proceeds

New York, March 2 - United States Steel Corp. said it will redeem 35% of its $535 million face amount of 10¾% debentures using proceeds of a planned offering of 8 million shares of common stock.

Any remaining proceeds will be used for general corporate purposes, which may include redeeming up to 35% of the Pittsburgh steelmaker's 9¾% senior notes due 2010, repaying other debt and making payments to employee benefit plans.

The stock offering has a 1.2 million share greenshoe.

In January, United States Steel said it planned to issue stock to take advantage of the equity claw provision of its 10¾% debentures that expires in August.

The equity claw is exercisable at 10¾% over par.

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