ArcelorMittal Annual Report 2008

Notes to the Consolidated Financial Statements continued
ArcelorMittal and Subsidiaries
(millions of U.S. dollars, except share and per share data)
Corporate
€17 billion credit facility
On January 30, 2006, the Company
entered into a €5 billion credit agreement
with a group of lenders to finance the
cash portion of the offer for Arcelor
along with related transaction costs
(the “Initial Acquisition Facility”) and
a €3.0 billion credit agreement to refinance
the previous credit facility entered into
during 2005 (the “Refinancing Facility”).
On May 23, 2006, the Company entered
into a €2.8 billion agreement with a group
of lenders to finance the cash portion of
the increased offer for Arcelor along with
related transaction costs (the “Revised
Acquisition Facility”).
On November 30, 2006, the Company
entered into a €17 billion credit agreement,
which is comprised of a €12 billion term
loan facility and a €5 billion revolving credit
facility, with a group of lenders to refinance
the Company’s Refinancing Facility and
Initial and Revised Acquisition Facilities
and Arcelor’s €4.0 billion term loan facility
and €3.0 billion revolving credit facility.
All of these refinanced facilities were
repaid and cancelled in December 2006.
On October 30, 2007, the maturity
of the €5 billion revolving credit facility
was extended for one additional year, to
November 30, 2012. On December 10,
2007, ArcelorMittal transferred the total
credit facility to ArcelorMittal Finance.
ArcelorMittal provided an unconditional
guarantee securing the debt. On October
31, 2008, the total outstanding amount
under this credit facility was transferred
to ArcelorMittal.
$3.2 billion credit facility
On April 7, 2005, the Company and certain
subsidiaries signed a five-year $3.2 billion
credit facility, which is comprised of a
$1.7 billion term loan and a $1.5 billion
revolving credit facility, with a consortium
of banks.
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On February 6, 2007, an amendment deed
was signed to align the agreement with
the €17 billion credit facility agreement
discussed above. On December 10, 2007,
this credit facility was transferred to
ArcelorMittal Finance and on September 5,
2008 the total outstanding amount
under this credit facility was transferred
to ArcelorMittal.
European Bank for Reconstruction
and Development (“EBRD”) Loans
The Company has entered into three
separate agreements with the EBRD for
on-lending to its subsidiaries as follows:
On November 18, 2002, as part of
the acquisition of ArcelorMittal Galati,
the Company entered into an agreement
with the EBRD for capital expenditures
and working capital requirements. The loan
is guaranteed by the Company and certain
of its subsidiaries. The outstanding amount
as of December 31, 2007 and 2008 was
33 and 15, respectively.
On April 4, 2006, the Company signed
a 200 loan agreement with the EBRD for
on-lending to ArcelorMittal Kryviy Rih.
The outstanding amount of the loan was
183 and 150 as of December 31, 2007
and 2008, respectively.
On June 15, 2007, the Company signed
a 100 loan agreement with the EBRD for
on-lending to ArcelorMittal Temirtau in
order to finance the overall modernization
of the coal mines operated by ArcelorMittal
Temirtau in the region of Karaganda
with the aim to bring them in line with
international best practice in terms of
productivity and health and safety.
The outstanding amount under this
agreement at December 31, 2007 and
2008 was nil and 100, respectively.
Debenture loans
During 2001, the former Usinor (renamed
ArcelorMittal France) issued €600 million
of loans in two tranches of €500 million
on April 10 and €100 million on July 31.
The loans are unsecured and
unsubordinated and bear interest at
6.125% per annum due April 10, 2008.
On April 10, 2008 the bond was repaid.
During 2003, ArcelorMittal Finance issued
€600 million of loans in two tranches
of €500 million on September 24 and
€100 million on December 4. The loans
are unsecured and unsubordinated and bear
interest at 5.125% per annum due
September 24, 2010.
On July 15, 2004, ArcelorMittal Finance
issued €100 million principal amount of
unsecured and unsubordinated fixed rated
notes bearing interest at 5.50% per annum
(issued at 101.97%) due July 15, 2014.
On November 7, 2004, ArcelorMittal
Finance issued €500 million principal
amount of unsecured and unsubordinated
fixed rated bonds bearing interest at
4.625% per annum (issued at 99.195%)
due November 7, 2014.
On December 10, 2004, ArcelorMittal
Finance issued €100 million principal
amount of unsecured and unsubordinated
fixed rated bonds bearing interest at
3.395% per annum (issued at 100.00%)
due December 10, 2009.
On May 27, 2008, the Company issued
3,000 principal amount of unsecured and
unsubordinated fixed rated bonds in two
tranches. The first tranche of 1,500 bears
interest at 5.375% (issued at 99.722%)
due June 2013 and the second tranche of
1,500 bears interest at 6.125% (issued at
99.571%) due June 2018.
Debenture loans denominated in euro
represent a total amount of €1,300 million.
Other debenture loans are denominated
in U.S. dollars.