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U.S. Steel (X) Prices Senior Notes Offering Due 2025

United States Steel Corporation X has priced its $750 million aggregate principal amount of 6.875% Senior Notes due 2025. The notes were issued at a price equal to 100% of their face value. Interest on the notes is payable semi-annually in arrears on Feb 15 and Aug 15 every year starting from Feb 15, 2018. The notes will mature on Aug 15, 2025, unless redeemed earlier or repurchased.  
U.S. Steel plans to use the net proceeds along with cash on hand, for the redemption of all of its 7.00% Senior Notes due 2018, its 6.875% Senior Notes due 2021, and its 7.50% Senior Notes due 2022 and the payment of associated fees and expenses.
U.S. Steel, which is among the prominent U.S. steel makers along with Nucor NUE, AK Steel AKS and Steel Dynamics STLD, recorded a profit of $261 million or $1.48 per share in second-quarter 2017, helped by strong results in its Flat-Rolled unit. Adjusted earnings came in at $1.07 per share for the reported quarter that topped the Zacks Consensus Estimate of 40 cents. Revenues rose roughly 22% year over year to $3,144 million in the quarter, also surpassing the Zacks Consensus Estimate of $2,975 million.
The company now expects net earnings of around $300 million or $1.70 per share for 2017, up from $260 million or $1.50 per share expected earlier. U.S. Steel remains optimistic for 2017. The company is seeing positive sentiment in the markets served by Flat-Rolled and USSE units. Its Tubular unit is also gaining from operational and cost improvements and strong market conditions.  
U.S. Steel is expected to gain from healthy automotive demand. Also, the company is actively engaged in improving its cost structure and increasing revenues on a sustainable basis through its “Carnegie Way” initiative that includes actions such as manufacturing process/logistics improvements and savings on SG&A costs. The company sees incremental impact from Carnegie Way benefits of $390 million for full-year 2017 as compared with 2016.
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