ArcelorMittal's $1.5 bn bond buyback gets lukewarm response

Steel giant ArcelorMittal's USD 1.5 billion offer to purchase in cash bonds worth USD 1.5 billion, which are due to mature in June 2019, received a lukewarm response.
Last week, the Luxembourg-based steelmaker had launched an offer to purchase any and all of its outstanding 9.850 per cent Notes due June 1, 2019. The outstanding principal amount of the Notes is USD 1.5 billion.
The offer expired yesterday.
In a regulatory filing today, the firm said the principal amount tendered for the Notes was about USD 410.65 million.
The world's largest steel maker had said the offer was made to reduce its gross debt through the early repayment of medium-term maturing bonds.

Barclays Capital, BNP Paribas, Citigroup Global Markets Limited and JP Morgan Securities served as the deal managers for the offer, while D F King served as the information agent and tender agent in connection with the offer.

Last month, the firm led by billionaire L N Mittal received a lukewarm response to its offers to purchase in cash securities worth around USD 3.2 billion, maturing in 2017 and 2018.
Earlier this month, ArcelorMittal reported a narrowing of its net loss to USD 416 million in the quarter ended March 31, but reported a rise in debt to USD 17.3 billion.

The firm had posted a net loss of USD 728 million in the year-ago period and USD 6.7 billion for October-December.
Net sales fell by 22 per cent to USD 13.4 billion in January-March from USD 17.1 billion last year.