ArcelorMittal Receives Positive Response to Request for Covenant Amendment
07/20/2009 - ArcelorMittal announces a positive outcome to the covenant amendment request to existing lenders in the EUR17,000,000,000 Credit Facilities, the USD4,000,000,000 Revolving Credit Facility and the USD3,250,000,000 Forward Start Facility.
ArcelorMittal announced that it has received a positive outcome to its request to existing lenders for an amendment to covenants in its EUR17,000,000,000 Credit Facilities, USD4,000,000,000 Revolving Credit Facility and the USD3,250,000,000 Forward Start Facility.
Borrowing costs under these facilities will not be increased by the covenant consent process unless the leverage ratio of net debt to EBITDA rises above 3.5x.
To date, the company has received consents from lenders aggregating above 90% of the commitments in each Facility with no declines thus far. While a number of lenders continue to work on the request, the consent threshold for each Facility has been comfortably achieved.
Calyon and HSBC Bank plc acted on behalf of ArcelorMittal as the Coordinators for the amendment process.
ArcelorMittal is the world's largest steel company, with operations in more than 60 countries. It is a leader in a range of major global steel markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding distribution networks. With an industrial presence in over 20 countries spanning four continents, the company covers the key steel markets, from emerging to mature.
Through its core values of sustainability, quality and leadership, ArcelorMittal commits to operating in a responsible way with respect its employees, contractors and the communities in which it operates. It is also committed to the sustainable management of the environment and of finite resources. ArcelorMittal also takes a leading role in the industry's efforts to develop breakthrough steelmaking technologies and is actively researching and developing steel-based technologies and solutions that contribute to combat climate change.
In 2008, ArcelorMittal had revenues of $124.9 billion and crude steel production of 103.3 million tonnes, representing approximately 10% of world steel output.
