United States Steel Corporation announced Monday that it would be making changes to two asset-based credit facilities that would reward performance for meeting sustainability targets.
When the company joined the global not-for-profit organization, ResponsibleSteel, in April, it became the first North American steelmaker to gain membership. The organization provides a process and certification framework for sustainable steel use throughout its lifecycle.
As part of the company’s ongoing “Best for All” strategy of profitable and sustainable steelmaking, U.S. Steel requested that its $2 billion asset-based revolving credit facility (ABL) be 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.
Additionally, the ABL has been amended to reduce the credit line to $175 billion, which supports the company’s current footprint and is consistent with the company’s efforts to optimize its global liquidity position.
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.”
In April, U.S. Steel announced its 2050 net-zero target as part of a transformational commitment to sustainable and profitable steelmaking.