Cliffs gets tenders for $484 million 8¼% notes due 2020, calls rest

By Susanna Moon

Chicago, Aug. 7 – Cliffs Natural Resources Inc. said investors had tendered $484,063,000 of its $504.4 million of outstanding 8¼% senior secured notes due 2020.

Cliffs said it purchased $484,063,000 principal amount of the notes on Monday and issued a call on Aug. 1 for the notes that remain outstanding after the offer at par plus a premium plus accrued interest to but excluding the redemption date, which is expected to be Aug. 31.

The tally excludes $935,000 principal amount of the notes tendered under guaranteed delivery procedures, according to a company update on Monday.

As announced July 31, Cliffs was offering to pay $1,123.75 for each $1,000 principal amount plus accrued interest up to but excluding the settlement date of Aug. 7.

The tender offer ended at 5 p.m. ET on Aug. 4.

The guaranteed delivery settlement date is expected to be Aug. 9.

The offer does not contain a minimum tender condition but was contingent on closing of one or more debt financing transactions with enough proceeds to fund the offer, along with cash on hand.

As reported, Cliffs priced $575 million of tack-ons to its 5¾% senior guaranteed notes due March 1, 2025 at 97 to yield 6.253% on July 31.

Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-1862) is the dealer manager. Global Bondholder Services Corp. (866 470-4300, 212 430-3774 or gbsc-usa.com/cliffs) is the information agent and depositary.

The mining and natural resources company is based in Cleveland.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.