Cleveland-Cliffs prices $964 million public offering of common shares

CLEVELAND - Cleveland-Cliffs Inc. (NYSE:CLF) has priced its underwritten public offering of 75 million common shares at approximately $12.85 per share, expecting to generate gross proceeds of $964 million before discounts and expenses, the steel producer announced Wednesday. The offering price represents a discount to CLF’s current trading price of $14.09, with the company’s market capitalization standing at approximately $7 billion.

The company has granted the underwriter, UBS Securities LLC, a 30-day option to purchase up to an additional 11.25 million common shares. The offering is expected to close Thursday, subject to customary closing conditions.

Cleveland-Cliffs plans to use the net proceeds to repay borrowings under its asset-based credit facility, with any remaining funds allocated for general corporate purposes, according to the company’s statement. This move addresses one of the company’s financial challenges identified by InvestingPro analysts, who note that Cleveland-Cliffs "operates with a significant debt burden" with total debt of $8 billion and a debt-to-equity ratio of 1.41 as of the most recent quarter.

The North America-based steel producer, which focuses on value-added sheet products particularly for the automotive industry, is offering the shares pursuant to an automatically effective shelf registration statement filed with the Securities and Exchange Commission.

UBS Securities is acting as the sole underwriter for the offering and plans to offer the shares through various channels including the New York Stock Exchange and over-the-counter market at prevailing or negotiated prices.

Cleveland-Cliffs operates as a vertically integrated company spanning from iron ore mining and processing of ferrous scrap through primary steelmaking and downstream finishing. The company employs approximately 30,000 people across its operations in the United States and Canada.

The announcement comes as the steel industry continues to navigate market volatility and competitive pressures. Despite current challenges, InvestingPro data shows Cleveland-Cliffs maintains a current ratio of 2.04, indicating its liquid assets exceed short-term obligations. However, the company reported negative earnings per share of -$3.37 over the last twelve months and is not expected to be profitable this year according to analyst forecasts. For deeper insights into CLF’s financial health and comprehensive analysis, investors can access the detailed Pro Research Report, part of the extensive coverage available for over 1,400 US equities on InvestingPro.

In other recent news, Cleveland-Cliffs Inc. has launched an underwritten public offering of 75 million common shares, with an option for underwriters to purchase an additional 11.25 million shares. The company plans to use the proceeds to repay borrowings under its credit facility and for general corporate purposes. Additionally, Cleveland-Cliffs completed a successful production trial with a major automaker, transitioning to routine production and delivery of steel parts using the automaker’s existing aluminum-forming equipment.

KeyBanc has raised its price target for Cleveland-Cliffs to $15.00, citing potential value creation from a memorandum of understanding with a foreign steelmaker. In contrast, Wells Fargo downgraded the company from Equal Weight to Underweight, setting a price target of $11.00 due to concerns about overvaluation. Meanwhile, BofA Securities increased its price target to $14.50 after Cleveland-Cliffs reported third-quarter 2025 adjusted EBITDA of $143 million, surpassing analyst expectations. These developments reflect a mix of strategic initiatives and varied analyst opinions on the company’s future prospects.

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