Tuesday, January 25 2005 11:25 Hrs (IST) - World Time -

London: Ahead of becoming the world's largest steelmaker, Mittal Steel yesterday (Jan 24, 2005) said that it has mandated a group of banks to arrange a $ 3.2 billion credit facility, mainly to fund its proposed merger with International Steel Group Inc.

The company headed by L N Mittal said that it has asked ABN AMRO, Citigroup Global Markets Ltd, Deutsche Bank AG and HSBC Bank to arrange an "unsecured revolving credit facility."

A release from the company said the facility has been fully underwritten by the Mandated Lead Arrangers.

"The facility will be used to finance the cash portion of the consideration payable in connection with the proposed merger with International Steel Group Inc to refinance certain existing indebtedness of Mittal Steel and its subsidiaries and for general corporate purposes," it said.

The facility will have a maturity of 5 years and the margin will be based on a rating grid. Mittal Steel is currently rated BBB (positive outlook) by rating agency S&P.

Mittal Steel's $ 4.5 billion proposed merger with ISG is subject to approval by the shareholders of ISG and Mittal Steel. The transaction is expected to be completed by the end of the first quarter of 2005.

Following completion of the proposed merger, the combined group, which will retain its listing on the NYSE and Euronext Amsterdam will be the largest steel company in the world by market capitalization and steel shipments.