Paul Tudor Jones sees potential market rally after late October
CLEVELAND - Cleveland-Cliffs Inc. (NYSE:CLF), with a market capitalization of $6.34 billion, announced it has priced an additional $275 million of Senior Unsecured Guaranteed Notes due 2034 at 102.750% of their principal amount, representing an implied yield of 6.992%.
The steel producer said the additional notes will be guaranteed on a senior unsecured basis by its material direct and indirect wholly-owned domestic subsidiaries, with certain exclusions. The offering, which is exempt from registration requirements under the Securities Act of 1933, is expected to close on October 10, 2025, subject to customary closing conditions.
Cleveland-Cliffs plans to use the net proceeds from the offering to repay borrowings under its asset-based lending facility, according to the company’s statement.
The additional notes are being offered only to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S. The securities have not been registered under the Securities Act or applicable state securities laws and may not be offered or sold in the United States without registration or an applicable exemption.
Cleveland-Cliffs describes itself as a leading North America-based steel producer focused on value-added sheet products, particularly for the automotive industry. The company operates with vertical integration from iron ore mining through steel production and downstream finishing. Headquartered in Cleveland, Ohio, the company employs approximately 30,000 people across operations in the United States and Canada.
The announcement comes as part of the company’s ongoing debt management strategy, based on information provided in the press release.
In other recent news, Cleveland-Cliffs Inc. has announced several developments regarding its financial strategies. The company plans to offer an additional $200 million in Senior Unsecured Guaranteed Notes due 2034, expanding its existing $850 million issuance from September 8. These additional notes will maintain the same 7.625% interest rate as the initial offering. Wells Fargo is managing the add-on offering as the sole bookrunner. Previously, Cleveland-Cliffs issued $850 million in senior notes due 2034 at a 7.625% rate, with interest paid semi-annually starting January 15, 2026.
In another development, United States Steel Corporation and Nippon Steel Corporation have voluntarily dismissed their lawsuit against Cleveland-Cliffs with prejudice. The lawsuit, filed on January 6, 2025, also named Cliffs’ Chairman, President, and CEO Lourenco Goncalves and International President of the United Steelworkers David McCall as defendants. Additionally, Cleveland-Cliffs announced its intention to offer $600 million in Senior Unsecured Guaranteed Notes to refinance existing debt, subject to market conditions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.