Cleveland-Cliffs Inc. has announced its intention to offer an additional $500 million aggregate principal amount of senior guaranteed notes due 2032. These notes will be issued as additional notes under the indenture dated as of March 18, 2024, pursuant to which Cleveland-Cliffs previously issued $825 million aggregate principal amount of 7.000% senior guaranteed notes due 2032. The net proceeds from this offering will be used to finance a portion of the cash consideration payable in connection with the acquisition of Stelco Holdings Inc., which Cleveland-Cliffs expects to complete in the fourth quarter of 2024 following the satisfaction or waiver of applicable conditions.
The offering is exempt from the registration requirements of the Securities Act of 1933 and will be made to qualified institutional buyers in reliance on the exemption from registration set forth in Rule 144A under the Securities Act, and outside the United States to non-U.S. persons in reliance on the exemption from registration set forth in Regulation S under the Securities Act.
Prior to the completion of the Stelco acquisition, Cleveland-Cliffs intends to use the net proceeds from the additional notes offering to pay off the entire outstanding balance under its asset-based lending facility.
Cleveland-Cliffs Inc. is a leading North America-based steel producer with a focus on value-added sheet products, particularly for the automotive industry. The company is vertically integrated from the mining of iron ore, production of pellets and direct reduced iron, and processing of ferrous scrap through primary steelmaking and downstream finishing, stamping, tooling, and tubing. The company employs approximately 28,000 people across its operations in the United States and Canada.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. The additional notes and related guarantees have not been registered under the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from the securities laws. Today the company's shares have moved 2.4% to a price of $13.03. For more information, read the company's full 8-K submission here.
