Steelmaker ArcelorMittal (MT, MT.AE) hit the market Monday with a $3 billion, three-part bond offering, according to a person familiar with the transaction.

The deal launched at a rate of 1.70 percentage points over comparable government debt in the case of a $500 million tranche of five-year bonds; 2.15 percentage points over Treasurys in the case of the $1.5 billion in 10-year bonds; and 2.30 percentage points over Treasurys in the case of a $1 billion batch of 30-year bonds.

The proceeds are expected to be used to refinance existing debt and for other general corporate purposes, the person familiar with the deal said.

The bonds are rated Baa3 by Moody's Investors Service, BBB- by Standard & Poor's and BBB by Fitch Ratings.

Citigroup, Barclays Capital and J.P. Morgan Chase are joint bookrunners on the sale, which is expected to price late Monday.

Existing ArcelorMittal bonds due Aug. 5, 2020 were trading with a risk premium of 1.94 percentage points over comparable government debt Monday, according to MarketAxess data, while debt due June 1, 2018 had a spread of 1.50 percentage points.

-By Katy Burne, Dow Jones Newswires; 212-416-3084; katy.burne@dowjones.com
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