Cleveland-Cliffs gives early tender results for 5¾% notes due 2025

By Rebecca Melvin

New York, May 13 – Cleveland-Cliffs Inc. announced early results of its offer to purchase up to $600 million of its $1,073,280,000 outstanding 5¾% senior guaranteed notes due 2025.

The company said $810,553,000 aggregate principal amount of the notes had been validly tendered and accepted for purchase by the early deadline.

The tender offer is scheduled to expire at midnight ET on May 24.

The amount tendered exceeded the offer cap, so the amount of notes accepted for purchase has a proration factor of 74.0558%, according to a news release.

Holders tendering before the early tender deadline were eligible to receive $1,000 for each $1,000 principal amount. Holders tendering after the early tender date will only be eligible to receive the tender offer consideration of $950 per $1,000 principal amount, or the total consideration less the early tender payment.

The company will also pay accrued interest to but excluding the May 13 settlement date, with the final settlement date expected to be May 29.

With the early full retirement of the 2021 notes, the next maturity date for Cleveland-Cliffs is now in 2024, the company said.

Goldman Sachs & Co. LLC (800 828-3182, 212 902-6941, attn.: liability management) is dealer manager for the tender offer. Global Bondholder Services Corp. (866 470-4300 or 212 430-3774 for banks and brokers) is the information agent and depositary.

Cleveland Cliffs is a Cleveland-based iron ore mining company.

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