By Andrea Heisinger
New York, Sept. 15 - Cliffs Natural Resources, Inc. sold an upsized $1 billion of senior unsecured notes (Baa3/BBB-/) on Wednesday in two tranches, according to an FWP filing with the Securities and Exchange Commission.
The size was initially announced at $750 million.
The $500 million of 4.8% 10-year notes sold at 99.793 to yield 4.826% with a spread of Treasuries plus 210 basis points. The notes priced at the tight end of guidance in the 215 bps area, plus or minus 5 bps.
The 10-year notes have a make-whole call of Treasuries plus 35 bps.
The $500 million of 6.25% 30-year bonds priced at 98.255 to yield 6.381% with a spread of Treasuries plus 250 bps. This tranche also priced at the tight end of talk in the 255 bps area, plus or minus 5 bps.
The 30-year bonds have a make-whole call at Treasuries plus 40 bps.
Both tranches feature a change-of-control put at 101%.
Bookrunners were Bank of America Merrill Lynch and J.P. Morgan Securities Inc.
RBS Securities Inc., Fifth Third Securities, KeyBanc Capital Markets Inc., PNC Securities and U.S. Bancorp Investments were the co-managers.
Proceeds are going to repay borrowings outstanding under a revolving credit facility and for general corporate purposes, including funding capital expenditures and acquisitions.
The international mining and natural resources company is based in Cleveland.
| Issuer: | Cliffs Natural Resources, Inc.
|
| Issue: | Senior unsecured notes
|
| Amount: | $1 billion, increased from $750 million
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities Inc.
|
| Co-managers: | RBS Securities Inc., Fifth Third Securities, KeyBanc Capital Markets Inc., PNC Securities, U.S. Bancorp Investments
|
| Change-of-control put: | 101%
|
| Trade date: | Sept. 15
|
| Settlement date: | Sept. 20
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Oct. 1, 2020
|
| Coupon: | 4.8%
|
| Price: | 99.793
|
| Yield: | 4.826%
|
| Spread: | Treasuries plus 210 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Price talk: | 215 bps area, plus or minus 5 bps
|
|
|
| 30-year bonds
|
| Amount: | $500 million
|
| Maturity: | Oct. 1, 2040
|
| Coupon: | 6.25%
|
| Price: | 98.255
|
| Yield: | 6.381%
|
| Spread: | Treasuries plus 250 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
| Price talk: | 255 bps area, plus or minus 5 bps
|
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