Cleveland-Cliffs launches tender offer for 6¾% notes due 2026

By Marisa Wong

Los Angeles, March 4 – Cleveland-Cliffs Inc. has begun a tender offer to purchase any and all of its $828,927,000 outstanding 6¾% senior secured notes due 2026 (Cusip: 185899AG6, U1852LAF4), according to a Monday press release.

The company is offering a tender offer consideration of $1,018 per $1,000 principal amount. The company will also pay accrued interest.

The offer is set to expire at 5 p.m. ET on March 13.

Settlement is slated for March 18.

Notes may be tendered under guaranteed delivery procedures.

The offer is not subject to a minimum tender condition but is subject to a financing condition.

Concurrently with the launch of the tender offer, the company will issue a conditional notice to redeem in full notes that remain outstanding after the tender offer. Those outstanding notes would be redeemed at 101.688 plus accrued interest to but excluding the redemption date, which is expected to be April 3. The redemption is also subject to the financing condition but will not be conditioned on the completion of the tender offer or on the tender of any specified amount of notes.

The company stated it intends to redeem any notes that remain outstanding after the tender offer is completed.

Wells Fargo Securities, LLC (866 309-6316 or 704 410-4759; liabilitymanagement@wellsfargo.com) is the dealer manager for the tender offer.

Global Bondholder Services Corp. (855 654-2014 or 212 430-3774 (for banks and brokers); https://www.gbsc-usa.com/clevelandcliffs/) is the information agent and depositary.

Cleveland-Cliffs is a Cleveland-based flat-rolled steel producer.

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