Nippon Steel to Raise Up to $5.6 Billion Partly to Strengthen Balance Sheet

By Kosaku Narioka

Nippon Steel plans to raise up to $5.6 billion in subordinated loans, as part of efforts to strengthen its balance sheet following its acquisition of U.S. Steel.

The Japanese steelmaker said Thursday that it signed committed subordinated term loans of up to 500 billion yen, equivalent to $3.48 billion, to repay the short-term loans taken out for the acquisition of U.S. Steel.

Nippon Steel also said it would obtain new subordinated term loans of Y300 billion to refinance part of the existing loans taken out in 2020.

The company said these loans would have attributes and features resembling equity and that it expected rating agencies would deem 50% of the raised funds to be equity for the purpose of their ratings.

Write to Kosaku Narioka at [e-mail]

(END) Dow Jones Newswires

07-03-25 0202ET