US Steel announced plans to lay of nearly a thousand workers at its Granite City Works mill in Illinois while it reports massive profit gains and enters into contract negotiations with the United Steelworkers.
Newly resurgent U.S. Steel is seeking to raise about $699 million by issuing 42 million new shares of common stock to pay down debt.
The Pittsburgh-based steelmaker, one of Northwest Indiana s largest employers that founded the city of Gary as a company town in 1906, will grant underwriter Morgan Stanley & Co. a 30-day option to buy up to 6.3 million more shares if demand warrants.
U.S. Steel plans to use the proceeds to redeem 35% of outstanding Senior Secured Notes due in 2025. It also will spend the money on general corporate purposes, which U.S. Steel said could include selling more debt. The underwriter may offer the shares of common stock from time to time for sale in one or more transactions on the New York Stock Exchange, in the over-the-counter market, through negotiated transactions or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices, or at negotiated prices, U.S. Steel said in a news release.