Cleveland-Cliffs Successfully Amends Asset-Based Lending Facility
Cleveland-Cliffs Inc. (NYSE: CLF) has successfully amended its $4.75 billion Asset-Based Lending (ABL) facility, preparing for the pending acquisition of Stelco Holdings Inc. The company has replaced Goldman Sachs' participation with increased commitments from various banks, including Bank of America, Wells Fargo, and J.P. Morgan. The capital request was three times over-subscribed, demonstrating strong support from banking partners.
CEO Lourenco Goncalves emphasized that this amendment reinforces Cliffs' strong financial position and ability to close the Stelco transaction efficiently in Q4 2024. The amended ABL matures in 2028, and as of the amendment's finalization, Cliffs had no net borrowings on the facility. This move positions the company for further growth in the United States and Canada.
Cleveland-Cliffs Inc. (NYSE: CLF) ha modificato con successo il suo polo di prestiti basati su attività (ABL) da 4,75 miliardi di dollari, preparandosi all'acquisizione imminente di Stelco Holdings Inc. L'azienda ha sostituito la partecipazione di Goldman Sachs con impegni maggiori da parte di varie banche, tra cui Bank of America, Wells Fargo e J.P. Morgan. La richiesta di capitale è stata sovrascritta tre volte, dimostrando un forte supporto da parte dei partner bancari.
Il CEO Lourenco Goncalves ha sottolineato che questa modifica rinforza la solida posizione finanziaria di Cliffs e la sua capacità di concludere efficientemente la transazione con Stelco nel quarto trimestre del 2024. L'ABL modificato scade nel 2028 e, al momento della finalizzazione della modifica, Cliffs non aveva prestiti netti su questa linea di credito. Questa mossa posiziona l'azienda per una crescita ulteriore negli Stati Uniti e in Canada.
Cleveland-Cliffs Inc. (NYSE: CLF) ha realizado con éxito la modificación de su línea de crédito basada en activos (ABL) de 4.75 mil millones de dólares, preparándose para la próxima adquisición de Stelco Holdings Inc. La compañía ha reemplazado la participación de Goldman Sachs con compromisos incrementales de varios bancos, incluidos Bank of America, Wells Fargo y J.P. Morgan. La solicitud de capital fue sobresuscrita tres veces, demostrando un fuerte apoyo de sus socios bancarios.
El CEO Lourenco Goncalves enfatizó que esta enmienda refuerza la sólida posición financiera de Cliffs y su capacidad para cerrar la transacción con Stelco de manera eficiente en el cuarto trimestre de 2024. La ABL enmendada vence en 2028 y, al momento de la finalización de la enmienda, Cliffs no tenía préstamos netos en esta línea. Este movimiento posiciona a la compañía para un mayor crecimiento en Estados Unidos y Canadá.
클리블랜드-클리프스 주식회사(Cleveland-Cliffs Inc., NYSE: CLF)는 47억 5천만 달러 규모의 자산 기반 대출(ABL) 시설을 성공적으로 수정하여 스텔코 홀딩스(Sstelco Holdings Inc.)의 인수 준비를 하고 있습니다. 이 회사는 골드만 삭스(Goldman Sachs)의 참여를 여러 은행, 즉 뱅크 오브 아메리카(Bank of America), 웰스파고(Wells Fargo), JP모건(J.P. Morgan)으로부터 늘어난 약정으로 대체했습니다. 자본 요청은 세 배로 예약되어 은행 파트너들로부터 강력한 지원을 입증했습니다.
CEO 로렌코 곤칼베스(Lourenco Goncalves)는 이번 수정이 클리프스의 탄탄한 재무 상태와 2024년 4분기에 스텔코 거래를 효율적으로 마무리할 수 있는 능력을 강화한다고 강조했습니다. 수정된 ABL은 2028년에 만료되며, 수정이 최종화된 시점에서 클리프스는 해당 시설에서 순 대출이 없었습니다. 이번 조치는 회사를 미국과 캐나다에서 추가 성장을 위한 위치에 놓이게 합니다.
Cleveland-Cliffs Inc. (NYSE: CLF) a réussi à modifier son crédit basé sur des actifs (ABL) de 4,75 milliards de dollars, se préparant à l'acquisition imminente de Stelco Holdings Inc. L'entreprise a remplacé la participation de Goldman Sachs par des engagements accrus de plusieurs banques, y compris Bank of America, Wells Fargo et J.P. Morgan. La demande de capitaux a été trois fois sursouscrite, démontrant un fort soutien de la part des partenaires bancaires.
Le PDG Lourenco Goncalves a souligné que cette modification renforce la solide position financière de Cliffs et sa capacité à conclure efficacement la transaction avec Stelco au cours du quatrième trimestre de 2024. L'ABL modifié arrive à maturité en 2028 et, au moment de la finalisation de la modification, Cliffs n'avait pas d'emprunts nets sur cette facilité. Ce mouvement positionne l'entreprise pour une croissance supplémentaire aux États-Unis et au Canada.
Cleveland-Cliffs Inc. (NYSE: CLF) hat erfolgreich seine 4,75 Milliarden Dollar umfassende Anlagebasierte Kreditlinie (ABL) geändert, um sich auf die bevorstehende Übernahme von Stelco Holdings Inc. vorzubereiten. Das Unternehmen hat die Beteiligung von Goldman Sachs durch erhöhte Zusagen verschiedener Banken ersetzt, darunter Bank of America, Wells Fargo und J.P. Morgan. Die Kapitalanfrage war dreifach überzeichnet, was die starke Unterstützung durch die Bankpartner zeigt.
CEO Lourenco Goncalves betonte, dass diese Änderung die starke finanzielle Lage von Cliffs und die Fähigkeit, die Transaktion mit Stelco im vierten Quartal 2024 effizient abzuschließen, verstärkt. Die geänderte ABL läuft 2028 aus, und im Zeitpunkt der Finalisierung der Änderung hatte Cliffs keine Nettokredite in dieser Einrichtung. Dieser Schritt positioniert das Unternehmen für weiteres Wachstum in den Vereinigten Staaten und Kanada.
- Successfully amended $4.75 billion Asset-Based Lending facility
- Capital request was three times over-subscribed, showing strong banking support
- No net borrowings on the ABL facility as of amendment finalization
- Extended ABL maturity to 2028
- Positioned for growth in the United States and Canada
- None.
Insights
Cleveland-Cliffs' successful amendment of its
The amendment of Cleveland-Cliffs' ABL facility signals a strategic shift in the steel industry landscape. The pending Stelco acquisition could potentially reshape market dynamics in the U.S. and Canadian steel sectors. The strong bank support, evidenced by the over-subscription, suggests positive market sentiment towards Cliffs' expansion strategy. This move could lead to increased market share and improved competitive positioning. However, the steel industry is cyclical and subject to economic fluctuations. Investors should consider how this expansion might affect Cliffs' operational efficiency and its ability to navigate potential market downturns in the future.
The successful amendment of Cleveland-Cliffs' ABL facility highlights the company's strong legal and financial acumen. Replacing Goldman Sachs' participation with commitments from multiple banks diversifies Cliffs' financial relationships, potentially reducing risk. The extended maturity to 2028 provides long-term stability. However, investors should be aware that such large-scale financing arrangements often come with covenants and conditions that could impact operational flexibility. The planned Stelco acquisition will likely require regulatory approvals, particularly given its cross-border nature. Shareholders should monitor the progress of these regulatory processes and any potential legal challenges that may arise during the acquisition.
Cliffs’ Chairman, President and CEO, Lourenco Goncalves said: “In this latest ABL amendment, our capital request was three times over-subscribed, showing continued strong support from our banking partners. We thank our entire bank group for their participation as we focus on partners who share our strategic priorities. As we position Cliffs for further growth in
As of the finalization of the amendment, Cliffs had no net borrowings on its ABL facility. The amended ABL matures in 2028.
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, our businesses, our financial position or a transaction with Stelco, 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: our ability to maintain adequate liquidity, our level of indebtedness and the availability of capital could limit our financial flexibility and cash flow necessary to fund working capital, planned capital expenditures, acquisitions, and other general corporate purposes or ongoing needs of our business, or to repurchase our common shares; adverse changes in credit ratings, interest rates, foreign currency rates and tax laws; our ability to consummate any public or private acquisition transactions and to realize any or all of the anticipated benefits or estimated future synergies, as well as to successfully integrate any acquired businesses into our existing businesses; the risk that the proposed transaction with Stelco may not be consummated; the risk that a transaction with Stelco may be less accretive than expected, or may be dilutive, to Cliffs’ earnings per share, which may negatively affect the market price of Cliffs’ common shares; the risk that adverse reactions or changes to business or regulatory relationships may result from the announcement or completion of the proposed Stelco transaction; the possibility of the occurrence of any event, change or other circumstance that could give rise to the right of one or both of Cliffs or Stelco to terminate the transaction agreement between the two companies, including, but not limited to, the companies’ inability to obtain necessary regulatory approvals; the risk of shareholder litigation relating to the proposed transaction that could be instituted against Stelco, Cliffs or their respective directors and officers; the possibility that Cliffs and Stelco will incur significant transaction and other costs in connection with the proposed transaction, which may be in excess of those anticipated by Cliffs; the risk that the financing transactions to be undertaken in connection with the proposed Stelco transaction may have a negative impact on the combined company’s credit profile, financial condition or financial flexibility; the possibility that the anticipated benefits of the proposed acquisition of Stelco are not realized to the same extent as projected and that the integration of the acquired business into Cliffs’ existing business, including uncertainties associated with maintaining relationships with customers, vendors and employees, is not as successful as expected; the risk that future synergies from the Stelco acquisition may not be realized or may take longer than expected to achieve; the risk that any announcements relating to, or the completion of, the proposed Stelco transaction could have adverse effects on the market price of Cliffs' common shares; and the risk of any unforeseen liabilities and future capital expenditures related to the proposed Stelco transaction.
For additional factors affecting the business of Cliffs, refer to Part I – Item 1A. Risk Factors of Cliffs’ Annual Report on Form 10-K for the year ended December 31, 2023, and other filings with the
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Source: Cleveland-Cliffs Inc.
FAQ
What is the purpose of Cleveland-Cliffs' (CLF) amended Asset-Based Lending facility?
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What is the new maturity date for Cleveland-Cliffs' (CLF) amended ABL facility?
How much did Cleveland-Cliffs (CLF) owe on its ABL facility after the amendment?
