Cleveland-Cliffs Inc (NYSE:CLF) Prices Senior Secured Notes Payable In 2024


Cleveland-Cliffs Inc (NYSE:CLF) has priced its previously reported private offering of $400 million total principal sum of its senior secured notes payable in 2024. The Secured Notes will have interest at a yearly rate of 4.875% and will be released at a rate of 99.347% of their principal sum. This offering is projected to close on December 19, 2017, depending on customary closing conditions.

The details

The Secured Notes will be severally, fully, unconditionally and jointly guaranteed on a senior secured way by considerably all of Cleveland-Cliffs’ material domestic subsidiary units and will be secured, subject in each instance to certain exceptions and allowed liens, by a first-priority lien on considerably all of company’s assets as well as the assets of the guarantors, discounting other rights to payment, inventory, investment property, as-extracted collateral, certain commercial tort claims and general intangibles, other accounts receivable, certain mobile equipment, deposit accounts, securities accounts, commodities accounts and other related proceeds and products and assets of each of the foregoing, collectively called the “ABL Collateral”, and a second-priority lien on this ABL Collateral, which marks as junior to an initial-priority lien for the advantage of the lenders under the firm’s senior secured asset-linked credit facility.

Cleveland-Cliffs plans to use the net proceeds from the Secured Notes offering, and with the net proceeds from its earlier reported concurrent convertible notes offering, to support a considerable portion of its hot briquetted iron capital assignment and for general corporate activities. The concurrent offering of convertible notes and the Secured Notes offering are not dependent upon one another.

In the last trading session, the stock price of Cleveland-Cliffs declined more than 1% to close the day at $7.21. The decline came at a share volume of 5.68 million compared to average share volume of 10.57 million. After the recent decline, the market cap of firm was noted at $2.2 billion.

Subscribe to get your free report!

* indicates required
*Past performance is not a predictor of future results. All investing involves risk of loss and individual investments may vary. The examples provided may not be representative of typical results. Your capital is at risk when you invest – you can lose some or all of your money. Never risk more than you can afford to lose.By submitting your information you agree to the terms of our Privacy Policy • Cancel Newsletter Any Time.This is a FREE service from Finacials Trend. Signing up for our FREE daily e-letter also entitles you to receive this report. We will NOT share your email address with anyone.