United States Steel Corporation Announces Pricing On Senior Convertible Notes
And Senior Notes Offerings
PITTSBURGH, March 20, 2013
PITTSBURGH, March 20, 2013 /PRNewswire/ --United States Steel Corporation
(NYSE: X) today announced that it has priced its public offerings of senior
convertible notes and senior notes.
The Company announced the pricing of its public offering of $275 million
aggregate principal amount of 2.75% Senior Convertible Notes due 2019 (the
"Convertible Notes"). The Company has granted the underwriters a 30-day
option to purchase up to an additional $41.25 million aggregate principal
amount of the Convertible Notes on the same terms and conditions to cover
over-allotments, if any. The Convertible Notes will pay interest
semi-annually in arrears on April 1 and October 1 of each year beginning
October 1, 2013 at a rate of 2.75% per year, and will mature on April 1, 2019,
unless earlier redeemed, repurchased or converted. Upon conversion, the
Company will pay or deliver, as the case may be, cash, shares of the Company's
common stock or a combination of cash and shares of the Company's common
stock, at the Company's election. The conversion rate will initially be
39.5491 shares of common stock per $1,000 principal amount of Convertible
Notes (representing an initial conversion price of approximately $25.29 per
share of common stock and a conversion premium of approximately 30% based on
the closing price of $19.45 per share of the Company's common stock on March
20, 2013), subject to adjustment in certain circumstances. The offerings are
expected to close on March 26, 2013, subject to customary closing conditions.
The Company also announced the pricing of its public offering of $275 million
aggregate principal amount of 6.875% senior notes due 2021 (the "Senior
Notes"). The Senior Notes were priced at 100% of the principal amount. The
Senior Notes will pay interest semi-annually in arrears on April 1 and October
1 of each year beginning October 1, 2013, and will mature on April 1, 2021,
unless earlier redeemed or repurchased.
The Company intends to use the net proceeds from the offerings for repurchases
or repayment of indebtedness, focusing on near-term maturities, and any
remaining proceeds for general corporate purposes.
J.P. Morgan Securities LLC, Barclays Capital Inc., Goldman, Sachs & Co., and
Morgan Stanley & Co. LLC are the joint book-runners for these offerings.
The offerings will be made pursuant to the Company's shelf registration
statement filed with the Securities and Exchange Commission on February 15,
2013. Copies of the preliminary prospectus supplements and accompanying
prospectus meeting the requirements of Section 10 of the Securities Act of
1933, as amended, may be obtained from: J.P. Morgan Securities LLC c/o
Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York
11717 or by telephone at (866) 803-9204; Barclays Capital Inc. c/o Broadridge
Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone
at (888) 603-5847 or email: Barclaysprospectus@broadridge.com; Goldman, Sachs
& Co., Attn: Prospectus Department, 200 West Street, New York, NY 10282, or by
telephone at (866) 471-2526, facsimile: (212) 902-9316 or e-mail:
email@example.com; or Morgan Stanley & Co. LLC, Attn: Prospectus
Department, 180 Varick Street, Second Floor, New York, NY 10014, or by
telephone at (866) 718-1649 or email: firstname.lastname@example.org.
This press release does not constitute an offer to sell or the solicitation of
an offer to buy, nor shall there be any sale of any of the securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any such
This release contains forward-looking statements with respect to market
conditions and proposed offerings. In accordance with "safe harbor" provisions
of the Private Securities Litigation Reform Act of 1995, cautionary statements
identifying important factors, but not necessarily all factors, that could
cause actual results to differ materially from those set forth in the
forward-looking statements have been included in the prospectuses for these
offerings, the Form 10-K of U. S. Steel for the year ended December 31, 2012,
and in subsequent filings for U. S. Steel.
For more information on United States Steel go to www.ussteel.com
SOURCE United States Steel Corporation
Contact: Media, Courtney Boone, (412) 433-6791, Investors/Analysts, Dan
Lesnak, (412) 433-1184
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