Cleveland-Cliffs Inc. to Offer $750 Million in Senior Unsecured Notes
Cleveland-Cliffs Inc. revealed plans to offer $750 million in Senior Guaranteed Notes due 2031. The offering is exempt from the Securities Act’s registration requirements. These Notes will be guaranteed on a senior unsecured basis by Cliffs’ primary domestic subsidiaries, excluding certain subsidiaries.
The company intends to utilize the net proceeds from the Notes for general corporate purposes, including the repayment of borrowings under its asset-based credit facility.
It’s essential to note that this announcement is not an offer to sell securities, and the offering is exclusively available to qualified institutional buyers under Rule 144A and non-U.S. individuals under Regulation S. The Notes and guarantees have not been registered under the Securities Act or any state securities laws, making their sale in the U.S. subject to registration or an applicable exemption.
Cleveland-Cliffs Inc. is a significant North America-based steel producer, focusing on value-added sheet products, specifically for the automotive sector. The company maintains a vertical integration approach, encompassing iron ore mining, pellet production, direct reduced iron processing, and ferrous scrap processing through steelmaking and finishing operations. With its headquarters in Cleveland, Ohio, the company employs around 30,000 people across its U.S. and Canadian operations.
This release includes forward-looking statements subject to federal securities laws. These statements, apart from historical facts, provide insights into the company’s expectations, estimates, and industry trends. However, investors require caution due to the risks and uncertainties that may cause future results to deviate from these statements. Factors such as steel, iron ore, and scrap metal price volatility, competitive steel industry dynamics, economic conditions, global steelmaking capacity, trade regulations, environmental regulations, and operational challenges can significantly influence actual results.
Risks associated with governmental actions, environmental impacts, regulatory compliance costs, liquidity maintenance, debt levels, credit ratings, and business strategy implementation should be considered. Furthermore, supply chain disruptions or changes in energy sources, raw material availability, and manufacturing equipment can impact operations and financial performance. Adverse events such as lawsuits, claims, and government proceedings concerning commercial disputes, environmental issues, and legacy operations can also affect the company’s viability.
Given these critical factors, Cleveland-Cliffs Inc. aims to navigate through the complex landscape of the industry while ensuring operational efficiency and financial stability. The proposed offering of Senior Guaranteed Notes represents a strategic move to support the company’s growth and sustainability objectives.