News Summary
Cleveland-Cliffs Inc. is set to offer $600 million in Senior Unsecured Guaranteed Notes due in 2034, aimed at refinancing existing debt. The offering targets qualified institutional buyers and is part of the company’s strategy to optimize its capital structure, addressing upcoming maturing notes. Potential investors are advised to consult the company’s Annual Report for risk factors. This move reflects Cleveland-Cliffs’ commitment to maintaining a strong position in the North American steel industry.
Cleveland, Ohio – Cleveland-Cliffs Inc. has announced plans to offer $600 million in aggregate principal amount of Senior Unsecured Guaranteed Notes due in 2034. This offering is aimed at refinancing existing debt and is subject to market and other conditions.
The company intends to use the net proceeds from this offering, together with existing liquidity, to redeem all outstanding 5.875% Senior Guaranteed Notes, 7.00% Senior Guaranteed Notes, and AK Steel 7.00% Senior Notes, all set to mature in 2027. This strategic move reflects Cleveland-Cliffs’ ongoing efforts to optimize its capital structure. However, the current announcement does not constitute a notice of redemption for any of the 2027 Notes, nor does it serve as an offer to sell or solicit offers to buy any of the securities.
The offering will be available exclusively to qualified institutional buyers in reliance on Rule 144A and to non-U.S. persons under Regulation S of the Securities Act. It is important to note that the Notes and their associated guarantees have not been registered under the Securities Act or any state or local jurisdiction’s securities laws, which restricts their sale in the U.S. without appropriate registration or exemption.
Cleveland-Cliffs is recognized as a leading steel producer in North America, with a significant focus on value-added sheet products, particularly aimed at the automotive industry. The company operates a vertically integrated business model that encompasses a wide range of operations, including iron ore mining, pellet production, direct reduced iron manufacturing, ferrous scrap processing, primary steelmaking, as well as downstream finishing, stamping, tooling, and tubing.
Headquartered in Cleveland, Ohio, Cleveland-Cliffs employs approximately 30,000 individuals across its operations in the United States and Canada. The company is committed to manufacturing high-quality steel and is strategically positioned in the market due to its comprehensive operations that cover various aspects of steel production.
It is essential for potential investors and stakeholders to be aware that the release includes forward-looking statements, which inherently involve risks and uncertainties that may lead to outcomes differing materially from expectations. Factors contributing to these risks include market price volatility for steel, scrap metal, and iron ore, competitive dynamics in the steel industry, dependency on the automotive market, as well as broader economic conditions globally and uncertainties surrounding government actions and trade policies.
Cleveland-Cliffs emphasizes that any forward-looking statements should not be overly relied upon by investors. Potential investors are encouraged to refer to the company’s Annual Report on Form 10-K for additional insights into risk factors that may influence the company’s business.
For further information, the media contact is Patricia Persico, Senior Director of Corporate Communications, reachable at (216) 694-5316. Investors can connect with James Kerr, Director of Investor Relations, at (216) 694-7719 for inquiries relating to the financial aspects of the company.
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