Cleveland-Cliffs Secures $3 Billion Credit Facility
Ticker: CLF · Form: 8-K · Filed: Mar 18, 2024 · CIK: 764065
Sentiment: bullish
Topics: debt, financing, credit-facility
TL;DR
Cliffs just inked a new $3B credit line, replacing their old $2B one. Expires 2029.
AI Summary
On March 18, 2024, Cleveland-Cliffs Inc. entered into a material definitive agreement, specifically a credit agreement for a new $3.0 billion revolving credit facility. This agreement replaces their previous $2.0 billion facility and matures on March 18, 2029.
Why It Matters
This substantial credit facility provides Cleveland-Cliffs with increased financial flexibility and liquidity, which is crucial for its ongoing operations and strategic initiatives in the metal mining sector.
Risk Assessment
Risk Level: low — The filing details a routine credit facility renewal and increase, which is generally a positive and low-risk event for a company.
Key Numbers
- $3.0B — New Revolving Credit Facility (Increases financial flexibility and liquidity.)
- $2.0B — Previous Revolving Credit Facility (Replaced by the new, larger facility.)
Key Players & Entities
- Cleveland-Cliffs Inc. (company) — Registrant
- $3.0 billion (dollar_amount) — New revolving credit facility amount
- $2.0 billion (dollar_amount) — Previous revolving credit facility amount
- March 18, 2024 (date) — Date of credit agreement
- March 18, 2029 (date) — Maturity date of new credit facility
FAQ
What is the primary purpose of the new credit agreement?
The new credit agreement establishes a $3.0 billion revolving credit facility to provide financial flexibility and liquidity for Cleveland-Cliffs Inc.
When was the new credit agreement entered into?
The new credit agreement was entered into on March 18, 2024.
What is the maturity date of the new revolving credit facility?
The new revolving credit facility matures on March 18, 2029.
What was the amount of the previous revolving credit facility?
The previous revolving credit facility had a principal amount of $2.0 billion.
What is the jurisdiction of incorporation for Cleveland-Cliffs Inc.?
Cleveland-Cliffs Inc. is incorporated in Ohio.
Filing Stats: 1,240 words · 5 min read · ~4 pages · Grade level 13.5 · Accepted 2024-03-18 17:05:44
Key Financial Figures
- $0.125 — h registered: Common Shares, par value $0.125 per share CLF New York Stock Exchange
- $825,000,000 — land-Cliffs Inc. (the "Company") issued $825,000,000 aggregate principal amount of 7.000% se
Filing Documents
- clf-20240318.htm (8-K) — 34KB
- 0000764065-24-000072.txt ( ) — 160KB
- clf-20240318.xsd (EX-101.SCH) — 2KB
- clf-20240318_lab.xml (EX-101.LAB) — 22KB
- clf-20240318_pre.xml (EX-101.PRE) — 13KB
- clf-20240318_htm.xml (XML) — 3KB
01 Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement. On March 18, 2024, Cleveland-Cliffs Inc. (the "Company") issued $825,000,000 aggregate principal amount of 7.000% senior unsecured guaranteed notes due 2032 (the "Notes") in a private transaction exempt from the registration requirements of the Securities Act of 1933 (the "Securities Act"). The Notes have not been, and will not be, registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. The Notes were issued pursuant to an indenture, dated as of March 18, 2024 (the "Indenture"), among the Company, the guarantors party thereto (the "Guarantors") and U.S. Bank Trust Company, National Association, as trustee (the "Trustee"). The Notes bear interest at an annual rate of 7.000%. Interest on the Notes is payable semi-annually in arrears on March 15 and September 15 of each year, commencing on September 15, 2024. The Notes will mature on March 15, 2032. The Notes are the Company's general unsecured senior obligations and rank equally in right of payment with all of the Company's existing and future unsecured senior indebtedness and will rank senior in right of payment to all of the Company's existing and future subordinated indebtedness. The Notes are effectively subordinated to the Company's existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness. The Notes are guaranteed on an unsecured senior basis by the Company's material direct and indirect whollyowned domestic subsidiaries and, therefore, are structurally senior to any of the Company's existing and future indebtedness that is not guaranteed by such guarantors and are structurally subordinated to all existing and future indebtedness and other liabilities of the Company's subsidiaries that do not guarantee the Notes. The terms of the Notes are governed by the Indenture. Th
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CLEVELAND-CLIFFS INC. Date: March 18, 2024 By: /s/ James D. Graham Name: James D. Graham Title: Executive Vice President, Chief Legal and Administrative Officer & Secretary 4