Cleveland Cliffs to price $750 million eight-year guaranteed notes in Monday drive-by

By Paul A. Harris

Portland, Ore., April 29 – Cleveland Cliffs Inc. plans to price a $750 million offering of eight-year senior guaranteed notes (existing ratings B1/B+) in a quick-to-market Monday trade trailing a mid-morning conference call with investors, according to market sources.

Initial guidance has the deal coming at a discount to yield in the low 6% area, a trader said.

Goldman Sachs & Co. LLC is the bookrunner for the Rule 144A and Regulation S with registration rights offering.

The notes become callable after three years at par plus 50% of the coupon.

The Cleveland-based iron ore mining company plans to use the proceeds to redeem all of its 2021 senior notes, as well as to fund a tender offer for its 2025 senior notes, with any remaining proceeds to be used for general corporate purposes.

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