Goldman Sachs Comments on ArcelorMittal (MT) Plans to Trim Debt
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Price: $72.20 +1.53%
Rating Summary:
16 Buy, 12 Hold, 2 Sell
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Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Rating Summary:
16 Buy, 12 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
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Shares of ArcelorMittal (NYSE: MT) saw action this week after the company reached a deal to raise $3.5 billion. The deal includes an equity offering valued at $1.75 billion for 104 million shares priced at $16.75 per share. ArcelorMittal also sold $2.25 billion in convertible notes. The company plans to use the capital to pay down debt, a key concern for the world’s top steelmaker.
Commenting on the developments, analysts Stephen Benson of Goldman Sachs said "On a fully diluted basis (from day one) the approximate EPS dilution we would expect would be around 5%-6%. Positively, net debt would fall from an estimated $22 bn at the end of 2012, to around $14 bn at the end of 2013."
"Debt reduction has been a key focus for many investors so the final outcome is positive for sentiment in this regard," added Benson.
Commenting on the developments, analysts Stephen Benson of Goldman Sachs said "On a fully diluted basis (from day one) the approximate EPS dilution we would expect would be around 5%-6%. Positively, net debt would fall from an estimated $22 bn at the end of 2012, to around $14 bn at the end of 2013."
"Debt reduction has been a key focus for many investors so the final outcome is positive for sentiment in this regard," added Benson.
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