Cleveland-Cliffs Inc. Announces Upsizing and Pricing of an Additional $600 Million Senior Guaranteed Notes due 2032
Cleveland-Cliffs Inc. (NYSE: CLF) has announced the upsizing and pricing of an additional $600 million in Senior Guaranteed Notes due 2032. The Additional Notes will have a 7.000% annual interest rate and be issued at 99.25% of their principal amount. This upsized offering reduces the capital needed for the upcoming Stelco acquisition financing. The Additional Notes Offering is expected to close on August 16, 2024.
The company's pro-forma liquidity is anticipated to be approximately $4.3 billion after the offering's completion. Cliffs plans to use the net proceeds to finance part of the Stelco Acquisition's cash consideration, expected to conclude in Q4 2024. Prior to the acquisition's completion, Cliffs intends to use the proceeds to pay off its outstanding asset-based lending facility balance and for cash on hand.
Cleveland-Cliffs Inc. (NYSE: CLF) ha annunciato l'aumento e il prezzo di ulteriori 600 milioni di dollari di Note Seniores Garantite scadenti nel 2032. Le Note Aggiuntive avranno un tasso di interesse annuo del 7,000% e saranno emesse a 99,25% del loro valore nominale. Questa offerta aumentata riduce il capitale necessario per il finanziamento dell'acquisizione di Stelco in arrivo. Si prevede che l'Offerta delle Note Aggiuntive si chiuda il 16 agosto 2024.
La liquidità pro forma dell'azienda è prevista essere di circa 4,3 miliardi di dollari dopo il completamento dell'offerta. Cliffs prevede di utilizzare i proventi netti per finanziare parte del corrispettivo in contante dell'Acquisizione di Stelco, previsto per concludersi nel Q4 2024. Prima del completamento dell'acquisizione, Cliffs intende utilizzare i proventi per estinguere il saldo della sua linea di credito garantita da attivi e per liquidità disponibile.
Cleveland-Cliffs Inc. (NYSE: CLF) ha anunciado el aumento y la fijación del precio de 600 millones de dólares en Notas Senior Garantizadas con vencimiento en 2032. Las Notas Adicionales tendrán una tasa de interés anual del 7,000% y se emitirán a 99.25% de su monto principal. Esta oferta aumentada reduce el capital necesario para el financiamiento de la próxima adquisición de Stelco. Se espera que el cierre de la Oferta de Notas Adicionales ocurra el 16 de agosto de 2024.
Se anticipa que la liquidez pro forma de la empresa sea aproximadamente 4.3 mil millones de dólares después de la finalización de la oferta. Cliffs planea utilizar los ingresos netos para financiar parte de la contraprestación en efectivo de la Adquisición de Stelco, que se espera concluir en Q4 2024. Antes de la finalización de la adquisición, Cliffs tiene la intención de usar los ingresos para saldar el saldo de su línea de crédito respaldada por activos y para tener efectivo disponible.
Cleveland-Cliffs Inc. (NYSE: CLF)는 2032년 만기 Senior Guaranteed Notes를 추가로 6억 달러 규모로 확대하고 가격을 책정했다고 발표했습니다. 추가 채권은 연 7.000%의 이율을 갖고 있으며, 원금의 99.25%에 발행됩니다. 이번 확대한 공시는 향후 Stelco 인수 금융을 위한 자본 요구량을 줄여줍니다. 추가 채권 공모는 2024년 8월 16일에 마감될 것으로 예상됩니다.
회사의 프로포르마 유동성은 공모 완료 후 약 43억 달러에 이를 것으로 예상됩니다. Cliffs는 순수익을 Stelco 인수의 현금 대가 일부를 금융하는 데 사용할 계획이며, 이는 2024년 4분기에 마무리 될 것으로 예상됩니다. 인수 완료 전, Cliffs는 수익금을 보유한 자산 기반 대출의 잔액 상환과 현금 확보를 위해 사용할 의도를 가지고 있습니다.
Cleveland-Cliffs Inc. (NYSE: CLF) a annoncé l'augmentation et la tarification de 600 millions de dollars de Notes Senior Garanties arrivant à échéance en 2032. Les Notes Additionnelles auront un taux d'intérêt annuel de 7,000% et seront émises à 99,25% de leur montant nominal. Cette offre élargie réduit le capital nécessaire pour le financement de l'acquisition imminente de Stelco. La clôture de l'Offre de Notes Additionnelles est prévue pour le 16 août 2024.
La liquidité pro forma de l'entreprise est estimée à environ 4,3 milliards de dollars après la finalisation de l'offre. Cliffs prévoit d'utiliser le produit net pour financer une partie de la contrepartie en espèces de l'Acquisition de Stelco, prévue pour se conclure au 4ème trimestre 2024. Avant l'achèvement de l'acquisition, Cliffs a l'intention d'utiliser les produits pour rembourser le solde de sa ligne de crédit garantie par des actifs et pour avoir de la liquidité disponible.
Cleveland-Cliffs Inc. (NYSE: CLF) hat die Erhöhung und Festsetzung des Preises von zusätzlich 600 Millionen Dollar an Senior Guaranteed Notes mit Laufzeit bis 2032 bekannt gegeben. Die zusätzlichen Anleihen werden einen jährlichen Zinssatz von 7,000% haben und zu 99,25% ihres Nennbetrags emittiert. Diese erweiterte Emission verringert das benötigte Kapital für die bevorstehende Finanzierung der Stelco-Akquisition. Die Emission der Zusatzanleihen wird voraussichtlich am 16. August 2024 abgeschlossen sein.
Die prognostizierte Liquidität des Unternehmens wird nach Abschluss der Emission etwa 4,3 Milliarden Dollar betragen. Cliffs plant, die Nettoerlöse zur Finanzierung eines Teils des Barpreises der Stelco-Akquisition zu verwenden, die voraussichtlich im IV. Quartal 2024 abgeschlossen wird. Vor Abschluss der Übernahme beabsichtigt Cliffs, die Erträge zur Tilgung des Saldos seiner besicherten Kreditlinie zu verwenden und um Liquidität zu sichern.
- Upsized offering of $600 million in Senior Guaranteed Notes
- Reduced capital needed for Stelco acquisition financing
- Expected pro-forma liquidity of approximately $4.3 billion post-offering
- Planned payoff of outstanding asset-based lending facility balance
- 7.000% annual interest rate on Additional Notes
- Notes issued at 99.25% of principal amount, slightly below par value
Insights
Cleveland-Cliffs' upsizing of its senior notes offering to
The upsized offering of
The structured offering of additional notes to qualified institutional buyers under Rule 144A and Regulation S exemptions is a common approach for expediting the capital raising process. This method allows Cleveland-Cliffs to avoid the time-consuming SEC registration process while still accessing sophisticated investors. The inclusion of material subsidiaries as guarantors strengthens the notes' appeal but may limit future financial flexibility. Investors should note that these unregistered securities have resale restrictions, potentially affecting liquidity. The expected closing date of August 16, 2024, provides a clear timeline, but remains subject to customary closing conditions. Careful monitoring of the Stelco acquisition's regulatory approvals and closing conditions will be important for assessing the overall transaction risk.
The upsized offering reduces the amount of capital needed to be raised in the forthcoming take-out acquisition financing for the previously announced acquisition of Stelco (the “Stelco Acquisition”). The Additional Notes Offering is expected to close on August 16, 2024, subject to the satisfaction of customary closing conditions. Pro-forma liquidity is expected to be approximately
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 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 and for cash on hand.
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.
Cleveland-Cliffs is a leading
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
For additional factors affecting the business of Cliffs, refer to Part I – Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2023, our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2024, and other filings with the
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Source: Cleveland-Cliffs Inc.
FAQ
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