How Effective Have ArcelorMittal’s Debt Reduction Efforts Been?
ArcelorMittal announced a $1.5 billion offer to purchase outstanding notes yesterday, as a part of its ongoing debt reduction efforts. [1] ArcelorMittal, which currently has a speculative grade credit rating from major agencies, has been making a concerted effort to shore up its balance sheet over the course of the past year. In addition, the company has also instituted a number of initiatives to lower operating costs and boost efficiency, amid an environment of subdued steel prices. These initiatives have translated into an improvement in the company’s EBITDA. As a result of the company’s debt and cost reduction efforts, its indebtedness has improved considerably. Assuming that the company buys back $1.5 billion of its debt with cash in its latest round of debt reduction, the company’s net debt to EBITDA (incorporating the impact of the $1.5 billion buyback on ArcelorMittal’s debt at the end of Q2 2016) would improve by around 27% as compared to 2015.
Have more questions about ArcelorMittal? See the links below.
- What Is ArcelorMittal’s Revenue And EBITDA Breakdown?
- What Is ArcelorMittal’s Fundamental Value Based On 2015 Results?
- By What Percentage Did ArcelorMittal’s Revenue & EBITDA Change In The Last 4 Years?
- How Has ArcelorMittal’s Revenue Composition Changed Over The Last 4 Years?
- By What Percentage Can ArcelorMittal’s Revenue & EBITDA Grow In The Next 3 Years?
- How Will ArcelorMittal’s Revenue Composition Change by 2020?
- ArcelorMittal: A Look Back At The Year 2015
- With Steel Facing Competition From Aluminum In Automotive Applications, By What Percentage Will ArcelorMittal’s Automotive Steel Shipments Change By 2020?
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