United States Steel Corporation (NYSE: X) (“U. S. Steel” or the
“Company”) today announced the closing of $240 million unsecured
Arkansas Development Finance Authority environmental improvement
revenue bonds, which carry a green bond designation (the “Green
Bonds”).
The Green Bonds, issued through Arkansas Development Finance
Authority, have a coupon rate of 5.70% and carry a final maturity
of 2053. Under the agreement with the Arkansas bond issuer, U. S.
Steel will pay semiannual interest.
The Company will use the proceeds from the Green Bonds to
partially fund work related to its new technologically advanced
flat rolled steelmaking facility, Big River 2 (“BR2”), currently
under construction near Osceola, Arkansas. The facility will
recycle, refine, and process scrap steel into finished steel
products.
“The $240 million Green Bonds transaction that closed today,
together with $290 million of Green Bonds issued in 2022 concludes
the financing available through the Arkansas Development Finance
Authority for BR2,” commented U. S. Steel President and Chief
Executive Officer David B. Burritt. “The opportunistic transactions
completed in 2022 and 2023 carried a weighted average coupon of
5.56% with 30 year maturities. Our strong balance sheet and
liquidity provide a solid foundation to continue to execute on our
Best for All® strategy.”
Construction of BR2 is expected to be completed in 2024, and
once complete will be the most advanced steelmaking facility in
North America, featuring two EAFs, with a total three million tons
per year of advanced steelmaking capability, a state-of-the-art
endless casting and rolling line and advanced finishing
capabilities. BR2 is expected to operate with up to 70-80% fewer
greenhouse gas emissions compared to the traditional integrated
steelmaking approach and directly support the Company’s
sustainability commitments.
BofA Securities, Fifth Third Securities, Truist Securities,
Wells Fargo Securities, Barclays, Citigroup, Crews &
Associates, Goldman Sachs & Co., J.P. Morgan Securities, and
Morgan Stanley & Co. acted as underwriters for the Green
Bonds.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This release contains information that may constitute
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. We intend the
forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements in those sections.
Generally, we have identified such forward-looking statements by
using the words “believe,” “expect,” “intend,” “estimate,”
“anticipate,” “project,” “target,” “forecast,” “aim,” “should,”
“plan,” “goal,” “future,” “will,” "may" and similar expressions or
by using future dates in connection with any discussion of, among
other things, the construction or operation of new or existing
facilities or operating capabilities, the timing, size and form of
share repurchase transactions, operating or financial performance,
trends, events or developments that we expect or anticipate will
occur in the future, statements relating to volume changes, share
of sales and earnings per share changes, anticipated cost savings,
potential capital and operational cash improvements, changes in the
global economic environment, including supply and demand
conditions, inflation, interest rates, supply chain disruptions and
changes in prices for our products, international trade duties and
other aspects of international trade policy, statements regarding
our future strategies, products and innovations, statements
regarding our greenhouse gas emissions reduction goals, statements
regarding existing or new regulations and statements expressing
general views about future operating results. However, the absence
of these words or similar expressions does not mean that a
statement is not forward-looking. Forward-looking statements are
not historical facts, but instead represent only the Company's
beliefs regarding future events, many of which, by their nature,
are inherently uncertain and outside of the Company's control. It
is possible that the Company's actual results and financial
condition may differ, possibly materially, from the anticipated
results and financial condition indicated in these forward-looking
statements. Management believes that these forward-looking
statements are reasonable as of the time made. However, caution
should be taken not to place undue reliance on any such
forward-looking statements because such statements speak only as of
the date when made. Our Company undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, except
as required by law. In addition, forward-looking statements are
subject to certain risks and uncertainties that could cause actual
results to differ materially from our Company's historical
experience and our present expectations or projections. These risks
and uncertainties include, but are not limited to, the risks and
uncertainties described in "Item 1A. Risk Factors" in our Annual
Report on Form 10-K for the fiscal year ended December 31, 2022 and
those described from time to time in our future reports filed with
the Securities and Exchange Commission.
References to "we," "us," "our," the "Company" and "U. S. Steel"
refer to United States Steel Corporation and its consolidated
subsidiaries unless otherwise indicated by the context.
Founded in 1901, United States Steel Corporation is a leading
steel producer. With an unwavering focus on safety, the company’s
customer-centric Best for All® strategy is advancing a more secure,
sustainable future for U. S. Steel and its stakeholders. With a
renewed emphasis on innovation, U. S. Steel serves the automotive,
construction, appliance, energy, containers, and packaging
industries with high value-added steel products such as U. S.
Steel’s proprietary XG3® advanced high-strength steel. The company
also maintains competitively advantaged iron ore production and has
an annual raw steelmaking capability of 22.4 million net tons. U.
S. Steel is headquartered in Pittsburgh, Pennsylvania, with
world-class operations across the United States and in Central
Europe. For more information, please visit www.ussteel.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20230518005715/en/
Arista Joyner Manager Financial Communications T – (412)
433-3994 E – aejoyner@uss.com
Kevin Lewis Vice President Finance T – (412) 433-6935 E –
klewis@uss.com
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