Milbank LLP advised United States Steel Corporation (NYSE: X) (“U. S. Steel”) in connection with (i) a $1,056,357,000 private offering of 12.000% Senior Secured Notes due 2025 and (ii) an underwritten public offering of 50,000,000 shares of common stock, for gross proceeds of approximately $429 million. The notes are fully and unconditionally guaranteed on a senior secured basis by all of U. S. Steel’s existing and future direct and indirect subsidiaries, other than certain “excluded subsidiaries.” Additionally, the notes and the note guarantees are secured by first-priority liens, subject to permitted liens, on substantially all of U. S. Steel’s and the guarantors’ assets, other than certain “excluded assets.” U. S. Steel intends to use the net proceeds from the offerings to strengthen its balance sheet, increase liquidity and for general corporate purposes. The bond transaction closed on May 29, 2020 and the equity transaction closed on June 22, 2020.
U. S. Steel, headquartered in Pittsburgh, Pennsylvania, is a leading integrated steel producer and Fortune 250 company with major operations in the United States and Central Europe.
The Milbank team representing U. S. Steel on the bond and equity offerings was led by Capital Markets partner James Ball, along with special counsel Teresa Chen and Sam Badawi and associates Theo Hart, Pablo Richards, Delia Solomon, Lauren Salter, Andi Hasaj, Gahee Lee and Nicole Rose. The Milbank team representing U. S. Steel on the bond offering also included Leveraged Finance partner Michael Bellucci, along with associates Chris Kwan and Annaliese Snodgrass. The team also included Tax partner Andrew Walker and associate David Hanno.
Milbank previously represented U. S. Steel in its October 2019 offering of senior convertible notes, as well as in its acquisition of a 49.9% ownership interest in Big River Steel.
