Cliffs begins tender offer for $100 million 3.95% notes due 2018

By Toni Weeks

San Luis Obispo, Calif., July 31 – Cliffs Natural Resources Inc. began a cash tender offer for up to $100 million principal amount of its outstanding $436 million of 3.95% senior notes due 2018, according to a press release.

Holders who tender their notes by 5 p.m. ET on Aug. 13, the early tender date, will receive the total consideration of $550 per $1,000 principal amount of notes. This amount includes an early tender premium of $50 per $1,000 of notes.

Holders who tender after the early tender date but by the expiration of the offer, midnight ET on Aug. 27, will receive $500 per $1,000 principal amount.

The company will also pay accrued interest up to, but not including, the settlement date, which is expected to be Aug. 28.

Tendered notes may not be withdrawn after the early tender date.

If the offer is oversubscribed, the amount of notes purchased will be prorated.

The offer is not subject to a minimum tender condition.

BofA Merrill Lynch (888 292-0070 or 980 388-3646) is the dealer manager. Global Bondholder Services Corp.(866 470-4300 or 212 430-3774) is the information agent and depositary.

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

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