PITTSBURGH, July 23, 2021–(BUSINESS WIRE)–United States Steel Corporation (NYSE: X) ("U. S. Steel" or "company") today announced changes to two asset-based credit facilities that reward performance for meeting sustainability targets. This is part of the ongoing execution of the company’s Best for All℠ strategy of creating profitable solutions for sustainable steelmaking.
At the company’s request, its $2 billion asset-based revolving credit facility (the "ABL") has been amended to include an increase or decrease in the margin payable based on achievement of targets related to carbon reduction, safety performance and facility certification by ResponsibleSteel™. When U. S. Steel joined the global not-for-profit organization in April, it became the first North American steelmaker to gain membership in ResponsibleSteel, which provides a process and certification framework for sustainable steel use throughout its lifecycle. In addition to the new sustainability link, the ABL has also been amended to reduce the credit line to $1.75 billion from $2 billion, which supports the company’s current footprint and is consistent with the company’s efforts to optimize its global liquidity position.
Additionally, the company’s subsidiary, Big River Steel, extended its $350 million ABL by five years to 2026 and included the same sustainability performance targets.
"These loan amendments align U. S. Steel’s financial incentives with our sustainability performance commitments," U. S. Steel President and Chief Executive Officer David B. Burritt said. "Under U. S. Steel’s Best for All strategy, sustainability and profitability are both necessary to achieving our goal of net-zero carbon emissions by 2050. That path is one where U. S. Steel’s innovation and creativity are coming together to meet the defining challenges of this era."
U. S. Steel in April announced its 2050 net-zero target, part of a transformational commitment to sustainable and profitable steelmaking. U. S. Steel expects to leverage its growing fleet of electric arc furnaces coupled with other technologies such as direct reduced iron, carbon-free energy sources, and carbon capture, sequestration, and utilization. Achieving the goal depends on public-private collaboration across industries and global stakeholders to develop breakthroughs, including access to commercially available carbon-neutral electricity sources.
J.P. Morgan Securities LLC and ING Capital LLC acted as Joint Sustainability Structuring Agents in the U. S. Steel Sustainability-linked ABL. Goldman Sachs Bank NA and ING Capital LLC acted as Joint Sustainability Structuring Agents in the BRS Sustainability-linked ABL.
Founded in 1901, United States Steel Corporation is a leading steel producer. With an unwavering focus on safety, the company’s customer-centric Best for All℠ strategy is advancing a more secure, sustainable future for U. S. Steel and its stakeholders. With a renewed emphasis on innovation, U. S. Steel serves the automotive, construction, appliance, energy, containers, and packaging industries with high value-added steel products such as U. S. Steel’s proprietary XG3™ advanced high-strength steel. The company also maintains competitively advantaged iron ore production and has an annual raw steelmaking capability of 26.2 million net tons. U. S. Steel is headquartered in Pittsburgh, Pennsylvania, with world-class operations across the United States and in Central Europe. For more information, please visit www.ussteel.com.
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