Mittal Steel arranges US$3.2bn credit facility

International Steel giant Mittal Steel (NYSE: MT) has "mandated" ABN AMRO, Citigroup Global Markets, Deutsche Bank AG London and HSBC Bank to arrange it a US$3.2bn unsecured revolving credit facility, the company announced. The facility will be used to finance the cash portion of the overall amount payable under the proposed merger with Ohio-based International Steel Group (NYSE: ISG), refinance some outstanding debts of Mittal Steel and its subsidiaries and for general corporate purposes. The credit facility has been fully underwritten by the mandated banks and is expected to launch at end-January. The facility will have a maturity of five years and the margin will be based on a rating grid. Mittal Steel is currently rated BBB by Standard & Poors and has a positive outlook, the company said. Mittal's US$4.5bn proposed merger with ISG is subject to approval by ISG and Mittal Steel shareholders. The transaction should be completed by the end of the first quarter of 2005, Mittal said. Formed by the combination of Rotterdam-based Ispat International and sister-company LNM Holdings, Mittal has subsidiaries in Mexico (Imexsa), Trinidad & Tobago and 12 other counties. The company's estimated revenues for the first nine months of 2004 are about US$16bn along with steel shipments of 32Mt. ISG is one of the 10 largest integrated steel producers in the world and has a hot-briquetted iron plant in Trinidad & Tobago.