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United States Steel Corporation Announces Proposed Common Stock And Convertible Notes Offerings


PITTSBURGH, April 27 /PRNewswire-FirstCall/ -- United States Steel Corporation today announced its intention to offer, subject to market and other conditions, 18 million shares of common stock and $300 million aggregate principal amount of senior convertible notes due 2014. The offerings will be made pursuant to the Company's shelf registration statement filed with the Securities and Exchange Commission. Neither the completion of the common stock offering nor the convertible notes offering will be contingent on the completion of the other.

The Company intends to use the net proceeds from the offerings to repay amounts outstanding on its $500 million three-year term loan due 2010. Any remaining proceeds from the offerings will be used to repay amounts outstanding on the Company's $500 million five-year term loan due 2012 and then for general corporate purposes. As of March 31, 2009, there was approximately $180 million and $475 million outstanding on the Company's three-year term loan and five-year term loan, respectively.

J.P. Morgan Securities Inc., Morgan Stanley & Co. Incorporated and Merrill Lynch, Pierce, Fenner & Smith Incorporated are the joint book-runners for the common stock offering. J.P. Morgan Securities Inc., Morgan Stanley & Co. Incorporated and Goldman, Sachs & Co. are the joint book-runners for the convertible note offering.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. A registration statement relating to the securities has been filed with the Securities and Exchange Commission.

Copies of the prospectuses meeting the requirements of Section 10 of the Securities Act of 1933, as amended, may be obtained from J.P. Morgan, National Statement Processing, Prospectus Library, 4 Chase Metrotech Center, CS Level, Brooklyn, New York 11245 or by telephone at (718) 242-8002, Morgan Stanley, Prospectus Department, 180 Varick Street 2/F, New York, New York 10014 or by telephone (866) 718-1649, Merrill Lynch, One Bryant Park, New York, New York 10036 (for copies of the common stock preliminary prospectus supplement), Goldman Sachs, Broad Street, 20th Floor, New York, New York 10004 (for copies of the senior convertible notes preliminary prospectus supplement) ,and at

Cautionary Statement

This release contains forward-looking statements with respect to market conditions and proposed offerings. U. S. Steel has been, and we expect will continue to be, negatively impacted by the current global credit and economic problems. In accordance with "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, cautionary statements identifying important factors, but not necessarily all factors, that could cause actual results to differ materially from those set forth in the forward-looking statements have been included in the Form 10-K of U. S. Steel for the year ended December 31, 2008, and in subsequent filings for U. S. Steel, including the Form 10-Q of U. S. Steel for the quarter ended March 31, 2009.

For more information about U. S. Steel, visit

SOURCE: United States Steel Corporation

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