Steel giant ArcelorMittal today said its US-based subsidiary intends to secure up to USD 1 billion 5-year revolving credit facility, which the firm will utilise for general corporate purposes.
London: Steel giant ArcelorMittal today said its US-based subsidiary intends to secure up to USD 1 billion 5-year revolving credit facility, which the firm will utilise for general corporate purposes.
The Luxembourg-based steelmaker said: "Its subsidiary ArcelorMittal USA intends to enter into a new, five-year senior secured asset-based revolving credit facility of up to USD 1 billion, which is expected to close in the second quarter of 2016."
This facility will be secured by inventory and certain other working capital and related assets of ArcelorMittal USA and certain of its subsidiaries in the US, the firm said in a regulatory filing.
"The facility (credit) will be used for general corporate purposes of ArcelorMittal USA and its subsidiaries.
The facility is not being guaranteed by ArcelorMittal," it added.
The world's largest steel producer said, in line with its financial policy, the firm does not intend to pursue additional secured financing beyond this single asset-based facility.
"Total secured debt at the end of December 31, 2015 was USD 625 million, 3.2 percent of total gross debt and consisted primarily of capital leases," it said.
ArcelorMittal through its US subsidiary supplies steel products in major North American markets including automotive, construction, pipe & tube, appliance, container and machinery.
ArcelorMittal USA owns and operates 27 facilities, including mines, integrated steel-making facilities, mini-mills and finishing operations.
It employs over 20,000 employees at these facilities across the US.
Last month, ArcelorMittal said it is selling its LaPlace and Vinton Long Carbon facilities in the US to an affiliate of the asset management firm Black Diamond Capital Management.
Financial details of the deal were however not disclosed.
The deal will help the steel maker reduce its debt that stood at USD 15.7 billion for the quarter ended December 2015.
Led by billionaire Lakshmi Mittal, ArcelorMittal reported USD 63.6 billion revenue in 2015 and a crude steel production of 92.5 million tonnes, while its iron ore production reached 62.8 million tonnes.