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Cleveland-Cliffs upsizes senior notes offering to $825 million

EditorNatashya Angelica
Published 03/04/2024, 03:38 PM
Updated 03/04/2024, 03:38 PM
© Reuters.

CLEVELAND - Cleveland-Cliffs Inc. (NYSE: NYSE:CLF), a major North American steel producer, announced the upsizing and pricing of $825 million in senior unsecured guaranteed notes due in 2032. The notes, bearing an annual interest rate of 7.000%, will be issued at par value.

The offering, exempt from the registration requirements of the Securities Act of 1933, is scheduled to close on March 18, 2024, contingent on customary closing conditions.

The company's direct and indirect wholly-owned domestic subsidiaries, excluding certain ones, will guarantee the notes on a senior unsecured basis. Cleveland-Cliffs plans to allocate the net proceeds from the notes and available liquidity to fully repurchase or redeem its outstanding 6.750% Senior Secured Notes due in 2026.

The notes and their guarantees are being offered only to qualified institutional buyers and non-U.S. persons outside the United States, in accordance with Rule 144A and Regulation S under the Securities Act, respectively.

These securities have not been registered under the Securities Act or any state or other jurisdiction's securities laws and cannot be sold in the United States absent registration or an exemption from these requirements.

Cleveland-Cliffs, established in 1847, is the largest flat-rolled steel producer and the leading supplier of steel to the North American automotive industry. The company is vertically integrated, with operations spanning from mining raw materials to steelmaking and downstream finishing. Headquartered in Ohio, it employs about 28,000 people across its facilities in the United States and Canada.

This press release includes forward-looking statements as defined by federal securities laws. Cleveland-Cliffs cautions that these statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. The company also reminds investors not to place undue reliance on forward-looking statements.

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The information in this article is based on a press release statement from Cleveland-Cliffs Inc.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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