United States Steel Corp. X, -1.09% said late Thursday it has reduced its debt by abut $2.7 billion year to date, excluding debt taken on for its acquisition of Big River Steel which closed in January. The company paid about $774 million using cash on hand tp acquire the remaining equity in Big River Steel. U.S. Steel redeemed $718 million of its outstanding 6.875% notes due 2025 in August. In July, it announced a target of up to $1 billion of additional deleveraging by mid-2022, which it will achieve by redeeming $180 million of the 6.625% Big River Steel senior notes due 2029, and $370 million of the 6.25% U. S. Steel senior notes due 2026. The moves so far this year have reduced the company’s annual run-rate interest costs by about $185 million and extended its maturity profile. The company also said it expects adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of about $2.0 billion in the third quarter, up from second-quarter adjusted EBITDA of about $1.3 billion. It did not offer details in its release of which items are excluded in its adjusted EBITDA number, but said they are “certain charges that can obscure underlying trends.” Shares fell 2.2% premarket Friday, but are up 51% in the year to date, while the S&P 500 SPX, -0.16% has gained 19%.
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