Junk-rated ArcelorMittal raises surprise $4 bn

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Lakshmi Mittal is the chairman and Chief Executive Officer of ArcelorMittal. (Reuters) Lakshmi Mittal is the chairman and Chief Executive Officer of ArcelorMittal. (Reuters)
SummaryWorld's biggest steel producer, ArcelorMittal had forecast that the offer would raise $3.5 billion.

Steelmaker ArcelorMittal SA raised a bigger-than-expected $4 billion in a share and convertible notes offering, it said on Thursday, to fix its debt-laden balance sheet.

The world's biggest steel producer, which has had its credit rating cut to "junk" status, had forecast that the offer would raise $3.5 billion.

Lakshmi Mittal is the chairman and Chief Executive Officer of ArcelorMittal.

It issued $2.25 billion in convertible notes at a 6 percent yearly coupon, against a 5.875 percent to 6.375 percent range it gave when it announced the offering on Wednesday.

That compares with $1.75 billion it raised by selling shares at $16.75 each, a 4.4 percent discount to the price they closed at in the United States on Tuesday, the day before the offer was announced.

The Luxembourg-based group has stepped up its debt-cutting efforts since Standard & Poor's became the first credit agency to cut the group's rating to junk in August.

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