July 25, 2008

ArcelorMittal closes Noble International deal

It is reported that ArcelorMittal now owns a 56% stake in automotive parts supplier Noble International Ltd following completion of a USD 50 million debt financing deal.

ArcelorMittal in a regulatory filing said that the investment was made in the form of five year convertible notes, with a 6% annual interest rate. The notes have an initial share conversion price of USD 15.75.

ArcelorMittal, Noble's largest supplier customer and shareholder, agreed earlier this month to provide the debt financing to the Warren, Michigan based company and buy out chairman Mr Robert J Skandalaris' stake. According to the filing with the Securities and Exchange Commission, ArcelorMittal now beneficially owns about 15 million Noble shares, which includes the shares bought from Skandalaris and the conversion shares.

Mr Thomas L Saeli CEO of Noble said that "We believe this cash infusion will put our North American covenant issues behind us and allow management to focus all of its attention on integrating our recent acquisitions and running the business.”