MTNA 5 ½ 05/18/23 Pfd

ArcelorMittal SA

Credit, Industrial/Transportation


Publicly traded companies mentioned herein: ArcelorMittal SA (MT), Nippon Steel Corp (5401 JP)

Highlights

The presenter is long ArcelorMittal SA (MT)’s mandatorily convertible notes (MTNA 5 ½ 05/13/23 Pfd), which were issued in May 2020, pay a 5.5% coupon, and are already in the money. MT is the largest steelmaker in the world with additional exposure to iron ore and coal. Geographically, the company operates in Europe (49% of its steel), North and South America (37%), and other countries including Kazakhstan, South Africa, and Ukraine (14% combined); additionally, MT recently entered into a joint venture in India with Nippon Steel (5401 JP). Overall, the presenter views the paper as a safe source of 5.5% coupons with equity upside. 

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