ArcelorMittal in $650 Million Offering of Deeply Subordinated Perpetual Capital Securities

September 28, 2012

Cleary Gottlieb represented ArcelorMittal in a $650 million offering of deeply subordinated perpetual capital securities. 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 perpetual nature, deep subordination, interest deferral option and other features make the securities a hybrid debt-equity instrument. ArcelorMittal expects to account for them as equity and to receive 50% equity credit on the securities from the major rating agencies.

This offering, which priced on September 25 and closed on September 28, was managed by Citibank, HSBC, BNP Paribas and The Royal Bank of Scotland as Joint Bookrunners.

Long-standing Cleary Gottlieb client ArcelorMittal is the world’s largest and most global steel producer as well as a leading mining company.