U.S. Steel gets tenders for 94% of 10¾% notes due 2008

By Jennifer Chiou

New York, Dec. 29 - United States Steel Corp. announced it obtained tenders from holders of $328 million or 94% of its $347.75 million of 10¾% senior notes due Aug. 1, 2008.

The Pittsburgh steelmaker also solicited consents to amend the note indenture to eliminate substantially all of the restrictive covenants and certain events of default. U.S. Steel executed a third supplemental indenture.

The consent deadline was 5 p.m. ET on Dec. 12. The offer ended at midnight ET on Dec. 27. It began on Nov. 29.

For each $1,000 principal amount, the company paid $1,083.40, which is the sum of the present value of the $1,000 principal amount plus the present value of all remaining interest payments to Aug. 1, 2008, discounted using the bid-side yield of the 5% Treasury note due July 31, 2008 and 50 basis points.

The payout included a $20.00 consent payment for holders who tendered prior to the early deadline.

UBS Securities LLC is the dealer manager (888 722-9555, ext. 4210, or call collect 203 719-4210). Georgeson Inc. is the information agent (866 647-8861 or call collect 212 440-9800).

The Bank of New York is the trustee (800 254-2826).

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