By Paul A. Harris
Portland, Ore., June 16 – Cleveland-Cliffs Inc. priced a $120 million add-on to its 6¾% senior secured notes due March 15, 2026 (Ba3/B) at 99.25, resulting in a 6.907% yield to maturity, according to market sources.
Bookrunners were Goldman Sachs & Co. LLC and Credit Suisse Securities (USA) LLC.
The Thursday drive-by deal priced at the rich end of price talk in the 99 area.
The Cleveland-based iron ore pellet producer plans to use the proceeds to finance the construction of the HBI production plant. Pending such use, proceeds will be temporarily used to pay down the ABL facility. Any remaining proceeds will be used for general corporate purposes.
| Issuer: | Cleveland-Cliffs Inc.
|
| Amount: | $120 million
|
| Maturity: | March 15, 2026
|
| Security description: | Add-on to 6¾% senior secured notes due March 15, 2026
|
| Bookrunners: | Goldman Sachs & Co. LLC (left) and Credit Suisse Securities (USA) LLC
|
| Coupon: | 6¾%
|
| Price: | 99.25
|
| Yield to maturity: | 6.907%
|
| Spread: | 646.5 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until March 15, 2022, then callable at 105.063
|
| Trade date: | June 16
|
| Settlement date: | June 19
|
| Ratings: | Moody's: Ba3
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 99 area
|
| Marketing: | Drive-by
|
| Original issue: | $725 million priced on March 2, 2020
|
| Fungibility: | Rule 144A add-on notes immediately fungible with original notes; Regulation S add-on notes become fungible with original notes after 40 days
|
| Total Issue size: | $845 million
|
|
|
© 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.
