United States Steel changed two asset-based credit facilities to reward performance for meeting sustainability targets. At the company’s request, its $2 billion asset-based revolving credit facility was 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. In addition to the new sustainability link, the asset-based loan was also amended to reduce the credit line to $1.75 billion from $2 billion. Additionally, U.S. Steel’s subsidiary, Big River Steel, extended its $350 million ABL by five years to 2026 and added the same sustainability performance targets as those for U.S. Steel’s ABL.
“These loan amendments align U.S. Steel’s financial incentives with our sustainability performance commitments,” David B. Burritt, president and CEO of U.S. Steel, 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.”
In April, U.S. Steel unveiled its 2050 net-zero target. According to U.S. Steel, when it joined ResponsibleSteel in April, it became the first North American steelmaker to gain membership in the global not-for-profit organization, which provides a process and certification framework for sustainable steel use.
J.P. Morgan Securities and ING Capital acted as joint sustainability structuring agents in the U.S. Steel sustainability-linked ABL. Goldman Sachs Bank and ING Capital acted as joint sustainability structuring agents for the Big River Steel sustainability-linked ABL.
