Cleveland-Cliffs Inc. Announces Proposed Offering of an Additional $500 Million Senior Guaranteed Notes due 2032
Cleveland-Cliffs Inc. (NYSE: CLF) has announced its intention to offer an additional $500 million in Senior Guaranteed Notes due 2032. This offering is an extension of the existing 7.000% Senior Guaranteed Notes due 2032, of which $825 million was previously issued. The Additional Notes will be guaranteed by Cliffs' material wholly-owned domestic subsidiaries.
The net proceeds from this offering are intended to finance part of the cash consideration for the previously announced acquisition of Stelco Holdings Inc., expected to complete in Q4 2024. Prior to the acquisition's completion, Cliffs plans to use the proceeds to pay off the outstanding balance of its asset-based lending facility.
The offering is exempt from SEC registration requirements and is only available to qualified institutional buyers and non-U.S. persons outside the United States.
Cleveland-Cliffs Inc. (NYSE: CLF) ha annunciato la sua intenzione di offrire ulteriori 500 milioni di dollari in Note Senior Garantite con scadenza nel 2032. Questa offerta è un'estensione delle attuali Note Senior Garantite al 7.000% con scadenza nel 2032, di cui 825 milioni di dollari sono già stati emessi. Le Note aggiuntive saranno garantite dalle sussidiarie nazionali interamente possedute da Cliffs.
Il ricavato netto di questa offerta è destinato a finanziare parte del corrispettivo in contante per l'acquisizione precedentemente annunciata di Stelco Holdings Inc., che ci si aspetta venga completata nel quarto trimestre del 2024. Prima del completamento dell'acquisizione, Cliffs prevede di utilizzare i proventi per estinguere il saldo dovuto della sua linea di credito basata sugli attivi.
L'offerta è esente dai requisiti di registrazione della SEC ed è disponibile solo per acquirenti istituzionali qualificati e per soggetti non statunitensi al di fuori degli Stati Uniti.
Cleveland-Cliffs Inc. (NYSE: CLF) ha anunciado su intención de ofrecer 500 millones de dólares adicionales en Notas Senior Garantizadas que vencen en 2032. Esta oferta es una extensión de las Notas Senior Garantizadas existentes con un interés del 7.000% que vencen en 2032, de las cuales 825 millones de dólares ya se habían emitido. Las Notas adicionales estarán garantizadas por las subsidiarias nacionales de propiedad exclusiva de Cliffs.
Los ingresos netos de esta oferta están destinados a financiar parte de la contraprestación en efectivo para la adquisición previamente anunciada de Stelco Holdings Inc., que se espera completar en el cuarto trimestre de 2024. Antes de completar la adquisición, Cliffs planea utilizar los ingresos para pagar el saldo pendiente de su línea de crédito basada en activos.
La oferta está exenta de los requisitos de registro de la SEC y solo está disponible para compradores institucionales calificados y personas no estadounidenses fuera de los Estados Unidos.
Cleveland-Cliffs Inc. (NYSE: CLF)는 2032년 만기의 추가 5억 달러 규모의 고위험 보장 채권을 제공할 것이라고 발표했습니다. 이 제공은 현재 2032년 만기의 7.000% 고위험 보장 채권의 연장으로, 8억 2500만 달러가 이미 발행되었습니다. 추가 채권은 Cliffs의 완전 소유 국내 자회사가 보증합니다.
이번 공모에서 얻은 순수익은 이전에 발표된 Stelco Holdings Inc. 인수에 대한 현금 대가의 일부를 조달하기 위해 사용될 예정이며, 이는 2024년 4분기에 완료될 것으로 예상됩니다. 인수 완료 전에 Cliffs는 수익금을 자산 기반 대출의 미지급 잔액을 상환하는 데 사용할 계획입니다.
이 공모는 SEC 등록 요건에서 면제되며, 미국 외의 자격을 갖춘 기관 투자자와 비미국인에게만 제공됩니다.
Cleveland-Cliffs Inc. (NYSE: CLF) a annoncé son intention d'offrir 500 millions de dollars supplémentaires en Obligations Senior Garantiées arrivant à échéance en 2032. Cette offre constitue une extension des Obligations Senior Garantiées existantes au taux de 7.000% arrivant à échéance en 2032, dont 825 millions de dollars avaient déjà été émises. Les Obligations supplémentaires seront garanties par les filiales nationales entièrement détenues par Cliffs.
Les produits nets de cette offre sont destinés à financer une partie de la contrepartie en espèces pour l'acquisition précédemment annoncée de Stelco Holdings Inc., dont l'achèvement est prévu au quatrième trimestre 2024. Avant l'achèvement de l'acquisition, Cliffs prévoit d'utiliser les produits pour rembourser le solde restant de sa ligne de crédit adossée à des actifs.
L'offre est exemptée des exigences d'enregistrement auprès de la SEC et n'est destinée qu'aux acheteurs institutionnels qualifiés et aux personnes non américaines en dehors des États-Unis.
Cleveland-Cliffs Inc. (NYSE: CLF) hat seine Absicht bekannt gegeben, zusätzlich 500 Millionen Dollar an Garantierten Senior Notes mit Fälligkeit 2032 anzubieten. Dieses Angebot ist eine Erweiterung der bestehenden 7.000% Garantierten Senior Notes mit Fälligkeit 2032, von denen bereits 825 Millionen Dollar emittiert wurden. Die zusätzlichen Notes werden durch die vollständig im Besitz von Cliffs befindlichen inländischen Tochtergesellschaften garantiert.
Die Nettoerlöse aus diesem Angebot sind vorgesehen, um einen Teil der Barvergütung für die zuvor angekündigte Übernahme von Stelco Holdings Inc. zu finanzieren, die voraussichtlich im vierten Quartal 2024 abgeschlossen werden soll. Vor dem Abschluss der Übernahme plant Cliffs, die Erlöse zu verwenden, um den ausstehenden Saldo seiner asset-basierten Kreditfazilität zu begleichen.
Das Angebot ist von den Registrierungsanforderungen der SEC befreit und steht nur qualifizierten institutionellen Käufern und nicht US-Personen außerhalb der Vereinigten Staaten zur Verfügung.
- Raising $500 million through senior guaranteed notes offering
- Proceeds to be used for strategic acquisition of Stelco Holdings Inc.
- Interim use of proceeds to pay off asset-based lending facility, potentially improving debt structure
- Increase in long-term debt by $500 million
- Potential dilution of existing shareholders' equity
- Increased financial leverage and interest expenses
Insights
Cleveland-Cliffs' proposed
The additional notes offering by Cleveland-Cliffs underscores the ongoing consolidation trend in the steel industry. The Stelco acquisition, partially financed by this offering, aims to strengthen CLF's market position and potentially create synergies. This move could reshape competitive dynamics in the North American steel market. Investors should consider the long-term strategic benefits against short-term financial implications. The success of this offering may also indicate market appetite for high-yield corporate debt in the current economic environment, providing insights into broader fixed income trends and investor sentiment towards the materials sector.
The structure of Cleveland-Cliffs' additional notes offering as a Rule 144A and Regulation S transaction is noteworthy. This approach allows CLF to access capital markets efficiently while avoiding the time and expense of SEC registration. The inclusion of material subsidiary guarantees enhances the notes' credit profile, potentially lowering borrowing costs. However, investors should be aware of the resale restrictions associated with these unregistered securities. The clear disclosure about the offering's exempt status and the notes' limitations demonstrates CLF's commitment to regulatory compliance, which is important for maintaining investor trust and avoiding legal complications.
Cliffs intends to use the net proceeds from the Additional Notes Offering to finance a portion of the cash consideration payable in connection with the previously announced acquisition of Stelco Holdings Inc. (the “Stelco Acquisition”), which Cliffs expects to complete in the fourth quarter of 2024 following the satisfaction or waiver of applicable conditions. Prior to the completion of the Stelco Acquisition, 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.
This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities. The Additional Notes and related guarantees are being offered only to qualified institutional buyers in reliance on the exemption from registration set forth in Rule 144A under the Securities Act, and outside
About Cleveland-Cliffs Inc.
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Forward Looking Statements
This release contains statements that constitute "forward-looking statements" within the meaning of the federal securities laws. All statements other than historical facts, including, without limitation, statements regarding our current expectations, estimates and projections about our industry or our businesses, are forward-looking statements. We caution investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. Investors are cautioned not to place undue reliance on forward-looking statements. Among the risks and uncertainties that could cause actual results to differ from those described in forward-looking statements are the following: continued volatility of steel, iron ore and scrap metal market prices, which directly and indirectly impact the prices of the products that we sell to our customers; uncertainties associated with the highly competitive and cyclical steel industry and our reliance on the demand for steel from the automotive industry; potential weaknesses and uncertainties in global economic conditions, excess global steelmaking capacity, oversupply of iron ore, prevalence of steel imports and reduced market demand; severe financial hardship, bankruptcy, temporary or permanent shutdowns or operational challenges of one or more of our major customers, key suppliers or contractors, which, among other adverse effects, could disrupt our operations or lead to reduced demand for our products, increased difficulty collecting receivables, and customers and/or suppliers asserting force majeure or other reasons for not performing their contractual obligations to us; risks related to
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MEDIA CONTACT:
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(216) 694-5316
INVESTOR CONTACT:
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Director, Investor Relations
(216) 694-7719
Source: Cleveland-Cliffs Inc.
FAQ
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