POSCO announces pricing results of its Offer to Purchase for cash up to US$400,000,000 aggregate principal amount of its outstanding 5.750% Notes due 2028

POSCO, a leading South Korean steel manufacturer, has announced the pricing results of its offer to purchase up to $400 million of its outstanding 5.750% Notes due 2028. The offer commenced on June 30, 2026, and the Early Tender Deadline was set for July 14, 2026. As of the deadline, POSCO reported that $358,232,000 in aggregate principal amount of the Notes were validly tendered, with an Early Settlement Date expected on July 20, 2026.

The decision to repurchase these Notes is part of POSCO's broader financial strategy to manage its debt profile and optimize its capital structure. The Notes, which were issued with a coupon rate of 5.750%, are part of a larger $1 billion offering. The company has structured the tender offer to incentivize early participation by offering a premium for those who tender their Notes before the Early Tender Deadline. The Early Tender Offer Consideration was set at $1,018.47 per $1,000 principal amount, reflecting a yield to maturity that incorporates a fixed spread over the benchmark U.S. Treasury yield.

This tender offer comes at a time when POSCO is navigating a complex market environment characterized by fluctuating steel prices and evolving demand dynamics. The global steel industry has faced challenges due to geopolitical tensions and supply chain disruptions, which have impacted production and pricing. By proactively managing its debt, POSCO aims to strengthen its balance sheet and enhance financial flexibility, allowing it to better respond to market conditions.

The offer's structure also includes a Late Tender Period, allowing additional Noteholders to participate after the Early Tender Deadline, albeit at a lower consideration. This approach reflects POSCO's commitment to maximizing participation while managing its financial obligations effectively. The total amount tendered thus far is below the maximum acceptance amount, allowing the company to accept all validly tendered Notes without proration.

Looking ahead, this transaction highlights POSCO's strategic focus on maintaining a robust financial position amid sector volatility. The successful execution of this tender offer could enhance investor confidence and potentially lead to more favorable financing conditions in the future. As the steel industry continues to adapt to changing economic landscapes, POSCO's proactive financial management will be critical in sustaining its competitive edge and supporting long-term growth initiatives.