Cleveland-Cliffs Inc. (NYSE: CLF) (“Cliffs” or the “Company”) announced today that it intends to redeem the entirety of its outstanding 5.90% senior notes due March 2020 (CUSIP No. 18683K AA9) and 4.80% senior notes due October 2020 (CUSIP No. 18683K AB7) (collectively, the “Notes”). The aggregate principal amount outstanding of the Notes is approximately $211 million. Pursuant to the terms of the Notes and the Indenture governing the Notes, the Company expects total payment to holders of the Notes to be approximately $220 million in aggregate, including make-whole premiums and accrued and unpaid interest to the redemption date, which is expected to be no later than October 8, 2018. The Notes will be repaid with cash on hand.
Lourenco Goncalves, Cliffs’ Chairman, President and Chief Executive Officer said, “We are pleased to announce our decision to go ahead and use $220 million of our cash on hand to redeem both tranches of unsecured notes maturing in 2020. Given the on-time and on-budget progress of our HBI plant construction, together with the strong free cash flow generation resulting from our domestically-focused business model, there is no reason to wait any longer to redeem these Notes.” Mr. Goncalves added, “In addition to reducing our total debt, this redemption brings us one step closer to being in a position to return capital to our shareholders.”
A notice of redemption setting forth the redemption procedures will be provided to registered holders of the Notes by The Depository Trust Company. Requests for documents relating to the redemption may be directed to the trustee and paying agent, U.S. Bank, Global Corporate Trust Services, 111 Filmore Ave. E; St. Paul, MN 55107; telephone: 1-800-934-6802.
About Cleveland-Cliffs Inc.
Founded in 1847, Cleveland-Cliffs Inc. is the largest and oldest independent iron ore mining company in the United States. We are a major supplier of iron ore pellets to the North American steel industry from our mines and pellet plants located in Michigan and Minnesota. By 2020, Cliffs expects to be the sole producer of hot briquetted iron (HBI) in the Great Lakes region with the development of its first production plant in Toledo, Ohio. Driven by the core values of safety, social, environmental and capital stewardship, our employees endeavor to provide all stakeholders with operating and financial transparency. For more information, visit http://www.clevelandcliffs.com.