ArcelorMittal, Peabody Arrange Funding for Macarthur Coal Deal

ArcelorMittal (MT), the world’s largest steelmaker, and Peabody Energy Corp. (BTU) have arranged debt financing to back their acquisition of Macarthur Coal Ltd. (MCC)

Peabody will fund its portion of the investment with a short-term loan for as much as $2 billion from Bank of America Corp., UBS AG, and Morgan Stanley, and a revolving credit for at least $1 billion, according to a joint statement on its website.

Luxembourg-based ArcelorMittal will fund the deal through a $6 billion credit line signed in March this year, according to the statement.

ArcelorMittal and Peabody, the biggest U.S. coal producer, raised their bid to A$16 a share from A$15.50, Brisbane-based Macarthur said today in a statement. The board recommends the offer, which is 44 percent more than the stock’s close before the initial proposal on July 11.

To contact the reporter on this story: Patricia Kuo in London at pkuo2@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net

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