Investors fear contagion after $2bn ArcelorMittal recap tanks

By Aidan Gregory, Owen Sanderson, Sam Kerr
14 May 2020

ArcelorMittal’s $2bn recapitalisation with equity and mandatorily convertible bonds has traded badly in the aftermarket, leaving investors nursing heavy losses and raising fears of wider market contagion. Aidan Gregory, Sam Kerr and Owen Sanderson report.

The steel maker sold $1.25bn of mandatorily convertible bonds and $750m of new shares on Monday night to shore up its balance sheet. Global lockdowns have caused demand for steel to collapse, which has pushed the company into a $1bn loss in the first quarter.

It was ...

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