United States Steel Corporation Completes $1.1 Billion of Incremental Financing to Support Strategy Execution

United States Steel Corporation (X) (“U. S. Steel”) today announced that it has completed approximately $1.1 billion of financing activities to support the execution of the Company’s “best of both” strategy.

“The closing of these financing activities marks another successful step in the execution of our ‘best of both’ strategy,” said David B. Burritt, President and Chief Executive Officer of U. S. Steel. “I am thankful for the strong support from our investors and bank groups of our goal to create a differentiated, world-competitive company.”

A summary of our recently completed financing activities appears below:

$2.0 Billion Revolving Credit Facility

On October 10, 2019, we launched the syndication of a new five-year senior secured asset-based revolving credit facility in an aggregate amount up to $2.0 billion (the “Fifth Amended and Restated Credit Agreement”) to replace the existing Fifth Amended and Restated Credit Agreement. The Fifth Amended and Restated Credit Agreement has substantially the same terms as the existing Credit Facility Agreement, except that the Fifth Amended and Restated Credit Agreement includes certain changes, notably that it will mature in 2024 and has a “first-in, last-out” tranche in an amount up to $150 million. The Fifth Amended and Restated Credit Agreement closed on October 25, 2019.

$275 Million / 5.75% / 30-Year Environmental Revenue Bonds

On October 10, 2019, we launched offerings of two series of environmental revenue bonds in aggregate principal amount of approximately $368 million, that will mature between 2024 and 2049 (collectively, the “2019 Environmental Revenue Bonds”). Proceeds of the 2019 Environmental Revenue Bonds in the amount of approximately $93 million will be used to redeem a portion of our existing outstanding environmental revenue bonds for which we issued a conditional redemption notice and will mature in 2024 and 2030. Proceeds of the 30-year Environmental Revenue Bonds in the amount of $275 million will be used to finance or refinance the acquisition, construction, equipping and installation of certain solid waste disposal facilities, including an electric arc furnace and other equipment and facilities at the Company’s Fairfield Works and will mature in 2049. The 2019 Environmental Revenue Bonds closed on October 25, 2019.

$350 Million / 5.00% / Senior Convertible Notes Due 2026

On October 21, 2019, U. S. Steel issued an aggregate principal amount of $300 million of 5.00% Senior Convertible Notes due November 1, 2026 (the “2026 Senior Convertible Notes”). In connection with the issuance of the 2026 Senior Convertible Notes, U. S. Steel granted the initial purchasers a 30-day option to purchase up to an additional $50 million in aggregate principal amount of 2026 Senior Convertible Notes, on the same terms and conditions. On October 23, 2019, the initial purchasers exercised this option in full and U. S. Steel issued an additional $50 million of 2026 Senior Convertible Notes on October 25, 2019. U. S. Steel received net proceeds of approximately $340 million from the issuance of the 2026 Senior Convertible Notes after deducting underwriting fees and estimated offering expenses. The Company intends to use the net proceeds for general corporate purposes, including, without limitation, for previously announced strategic investments and capital expenditures. Interest on the 2026 Senior Convertible Notes is payable semi-annually on May 1 and November 1 of each year, commencing on May 1, 2020.

About U. S. Steel

United States Steel Corporation, headquartered in Pittsburgh, PA, is a leading integrated steel producer and Fortune 250 company with major operations in the United States and Central Europe. For more information about U. S. Steel, please visit www.ussteel.com.