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ArcelorMittal Inks Revolving Credit Facility Worth $5.5B

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ArcelorMittal (MT - Free Report) has inked a $5.5 billion revolving credit facility with a five-year maturity along with the options for two one-year extensions.

The move replaces the existing $5.5 billion revolving credit facility agreement inked on Apr 30, 2015 and amended on Dec 21, 2016. Per the company, the facility will be used for the general corporate purposes of the group. Through this facility, ArcelorMittal is able to extend the average maturity date by roughly three years. It also provides the company significantly improved terms over the former facility.

ArcelorMittal’s shares have lost 32.8% in the past six months compared with 28.1% decline of the industry.



In November, the company stated that the market conditions remain favorable, and demand environment is positive along with healthy steel spreads. ArcelorMittal anticipates global apparent steel consumption (ASC) growth in the range of 2-3% for 2018, which remains unchanged from the previous expectation.

In the United States, the company projects ASC growth of 2-3% for 2018, also unchanged from prior projections. Demand in construction and machinery is likely to drive growth in ASC. The company continues to anticipate ASC growth in Europe to be in the range of 2-3%, supported by strength across construction and machinery end-use markets.

Per the company, ASC is expected to rise 5.5-6.5% in Brazil, unchanged from prior expectation. ASC growth in China is expected to be 1-2% (unchanged from prior forecast), driven by consistent improvement in real estate demand, ongoing strong machinery and automotive demand, partly offset by slowdown in infrastructure.

ArcelorMittal Price and Consensus

ArcelorMittal Price and Consensus | ArcelorMittal Quote

Zacks Rank & Stocks to Consider

ArcelorMittal currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the basic materials space are Seabridge Gold, Inc. (SA - Free Report) , The Mosaic Company (MOS - Free Report) and Cameco Corporation (CCJ - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Seabridge Gold has an expected earnings growth rate of 71.4% for the current year. The company’s shares have moved up 9.4% in the past year.

Mosaic has an expected earnings growth rate of 75.2% for the current year. The company’s shares have gained 11.9% in the past year.

Cameco has an expected earnings growth rate of 66.7% for the current year. Its shares have gained 14.7% in a year’s time.

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