By Alex MacDonald
LONDON--Steel titan ArcelorMittal (MT) said Thursday it has
extended the conversion date for $1 billion in privately placed
mandatory convertible bonds that were issued to a unit of Credit
Agricole S.A. (ACA.FR) and which isn't listed.
The steelmaker is seeking an extension as it grapples with lower
profitability due to anemic demand for its steel products,
particularly in Europe.
ArcelorMittal is cutting costs and selling non-core assets in
order to reduce net debt following credit downgrades by two large
credit rating companies, one of which said the steelmaker could
potentially breach a debt covenant in June 2013 unless it
significantly reduces its debt or raises its profits to cover its
debt obligations.
The conversion date on the bond that was issued in 2009 has now
been extended to Jan 31, 2014, the company said. The other main
features of the bond remain the same, it added.
The Luxembourg unit of ArcelorMittal which was responsible for
the bond issuance also said it has extended the notes linked to
shares of listed companies Eregli Demir ve Celik Fabrikalari
T.A.S.(EREGL.IS) or Erdemir of Turkey and China Oriental Group Co.
Ltd. (0581.HK). ArcelorMittal owns shares in both the companies and
used proceeds from the convertible bond issuance to invest in the
notes linked to those shares.
-Write to Alex MacDonald at alex.macdonald@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires