U.S. Steel Closes on $240 Million Financing to Support Big River 2

SEATTLE (Scrap Monster): Pittsburgh-based leading steelmaker, United States Steel Corporation (U.S. Steel) announced closing of $240 million financing in support of flat rolled steelmaking facility, Big River 2, which is currently under construction in Osceola, Arkansas.

The Arkansas Development Finance Authority environmental improvement revenue bonds carry a green bond designation. It carries a coupon rate of 5.70% and carry a final maturity of 2053. As per agreement, the steelmaker will pay semi-annual interest. The proceeds will be used to partially fund work related to Big River 2.

The construction of BR2 is expected to be completed in 2024. Upon completion, it will be the most advanced steelmaking facility in the entire North American region. The facility will feature two electric arc furnaces with a total steelmaking capacity of approximately three million tons per year.

David B. Burritt, President and Chief Executive Officer, U.S. Steel commented that the $240 million transaction along with $290 million of Green Bonds issued last year concludes the financing available through the Arkansas Development Finance Authority for the advanced steelmaking facility. The strong balance sheet and liquidity provide a solid foundation to continue to execute the “Best of All” strategy, he added.