Steel giant ArcelorMittal on Monday said its US-based subsidiary intends to secure up to $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 $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 $625 million, 3.2 per cent of total gross debt and consisted primarily of capital leases,” it said.