OREANDA-NEWS. October 01, 2012. ArcelorMittal (“ArcelorMittal” or the “Company”) announced the successful pricing of an offering of USD 650 Million subordinated perpetual capital securities (the “Securities”), reported the press-centre of ArcelorMittal.

The Securities have no fixed maturity date and are deeply subordinated. They bear interest at 8.75% per annum, subject to the right of the Company to defer interest payments. The initial coupon will reset periodically over the life of the Securities, with the first reset in year five and subsequently every five years thereafter. There will be a step up in interest of 25bps on the second reset date and a subsequent step up of 75bps (cumulative with the initial 25bps) fifteen years later. The Company will be entitled to call the Securities in year five, in year ten, and on subsequent interest payment dates. The Company will also have the option to redeem the Securities upon specific accounting, tax, rating agency or change of control events.

The Securities will be accounted for as equity in ArcelorMittal's consolidated financial statements prepared under IFRS. The net proceeds of this issue will be used for the general financing purposes of ArcelorMittal and its consolidated subsidiaries, including the repayment of existing debt.