Nippon Steel to raise $5.6 billion in subordinated loans to fund U.S. Steel deal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 03 2025
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Source: Reuters
Funding for Acquisition: Nippon Steel plans to raise 800 billion yen ($5.6 billion) through two subordinated loans to help finance its $14.9 billion acquisition of U.S. Steel and refinance existing loans.
Debt Management Strategy: Following the acquisition, Nippon Steel's debt-to-equity ratio increased significantly, and the company aims to reduce it to around 0.7 by March 2026 through cash flow from earnings and asset sales.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
