ArcelorMittal €2.77 billion rights issue

Overview:

• Luxembourg based steel company ArcelorMittal has undertaken a €2.77 billion rights issue of 1,262,351,531 ordinary shares on the Bolsa de Madrid.
• The issuance was carried out through a passport system that required coordination of the transaction process in the company’s different jurisdictions; Amsterdam, Luxembourg, New York and Paris.
• Existing customers received seven new shares for every 10 held. 
• The issuance comes after global steel slumps caused the company to report €16 billion of debt, and a 2015 net loss of $7.9 billion.
• The offering is underwritten by a syndicate of banks led by Goldman Sachs, Bank of America Merrill Lynch and Crédit Agricole Corporate and Investment Bank acting as joint global coordinators and joint bookrunners.
• Barclays, BNP Paribas, Citigroup, JPMorgan and Société Générale acted as joint bookrunners.

John Crabb - Journalist