Cleveland-Cliffs to offer additional $200 million in senior notes

CLEVELAND - Cleveland-Cliffs Inc. (NYSE:CLF) announced Tuesday it plans to offer an additional $200 million in Senior Unsecured Guaranteed Notes due 2034, expanding its existing $850 million issuance from September 8. The company, which currently carries a total debt of $7.75 billion according to InvestingPro data, maintains a healthy current ratio of 2.04, indicating sufficient liquidity to meet short-term obligations.

The additional notes will carry the same 7.625% interest rate as the initial offering and will be guaranteed by Cliffs’ material wholly-owned domestic subsidiaries. Wells Fargo is serving as the sole bookrunner for the add-on offering.

According to the company’s statement, proceeds from the offering will be used to repay borrowings under its asset-based credit facility.

The notes are being offered only to qualified institutional buyers under Rule 144A of the Securities Act and to non-U.S. persons under Regulation S. The securities have not been registered under the Securities Act or applicable state securities laws, limiting their sale in the United States without registration or an 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 vertically integrated company employs approximately 30,000 people across operations in the United States and Canada. With a market capitalization of $6.25 billion and current stock price of $12.64, the company maintains a FAIR financial health score according to InvestingPro’s comprehensive analysis, which includes 12 additional key insights available to subscribers.

The offering is subject to market and other conditions, based on information provided in the company’s press release. For detailed analysis of Cleveland-Cliffs’ financial position and future prospects, investors can access the full Pro Research Report, available exclusively on InvestingPro, offering comprehensive insights into one of the 1,400+ US equities covered by the platform.

In other recent news, Cleveland-Cliffs Inc. has issued $850 million in senior unsecured guaranteed notes due in 2034, bearing an interest rate of 7.625%. This offering was upsized and priced at par, with the notes guaranteed by the company’s domestic subsidiaries. The proceeds are intended to refinance existing debt, specifically targeting the redemption of outstanding senior notes due in 2027. Additionally, United States Steel Corporation and Nippon Steel have voluntarily dismissed their lawsuit against Cleveland-Cliffs, which included company executives as defendants. In another development, the U.S. Department of Commerce has imposed 50% tariffs on certain steel derivative products, a move Cleveland-Cliffs highlighted as a measure against tariff circumvention. This decision affects products processed through Mexico and Canada but originally produced outside North America. These recent developments reflect Cleveland-Cliffs’ ongoing financial strategies and market responses.

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