Steel giant ArcelorMittal's offers to purchase in cash securities worth around USD 3.2 billion, maturing in 2017 and 2018, have received a lukewarm response.
Last week, the world's biggest steelmaker had launched an "invitation" to holders of bonds -- 1 billion euro 4.625 per cent notes due November 17, 2017 and 500 million euro 4.50 per cent notes due March 29, 2018.
It had also come out with a 'tender offer' to purchase for cash any and all of its outstanding 6.125 per cent notes due 2018. The principal outstanding amount was USD 1.5 billion.
Announcing the acceptance of the 'Invitation', in a regulatory filing, ArcelorMittal said the tendered amount was about 627 million euro (around USD 713 million) for the total 'invitation' of 1.5 billion euro.
While for the 'tender offer', the tendered amount was around USD 438 million of the total of USD 1.5 billion on offer, it added.
The Luxembourg-based firm had said it will fund both the bond purchases through "existing cash resources" as well as from proceeds of the USD 3 billion rights issue that closed earlier this month.
Barclays Bank PLC, BNP Paribas, Citigroup Global Markets Limited and JP Morgan Securities plc were appointed to serve as the dealer managers for the both the transactions, while DF King was retained to serve as the information and tender agent.
