Steel Mills

Cleveland-Cliffs Continues Process for AK Steel Acquisition
Written by Sandy Williams
January 15, 2020
Cleveland-Cliffs has begun exchanging senior notes issued by AK Steel for notes issued by Cliffs in preparation for the acquisition of the Ohio-based steel company.
“For each $1,000 principal amount of Existing AK Steel Notes validly tendered on Feb. 12, 2020 (the ‘Expiration Date’) and not validly withdrawn, Eligible Holders of Existing AK Steel Notes will be eligible to receive the applicable exchange consideration,” stated the Cliffs announcement.
Cliffs is also seeking consent to adopt changes to the indentures governing the existing notes that will eliminate certain of the covenants, restrictive provisions and events of default.
The acquisition was announced in December with an anticipated closing date in the first half of this year. Cliffs and AK Steel currently expect to extend the expiration date for the notes exchange to coincide with completion of the merger.
The Cliffs/AK Steel combo is expected to provide both companies additional growth opportunities, including the potential restarting of the Ashland blast furnace.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills

Nippon could up investment in USS facilities to $7B: Report
It's the latest twist as the proxy battle heats up for Pittsburgh-based U.S. Steel.

Hybar expansion still on the table as Arkansas mill startup nears
As Hybar nears the completion of its $700-million rebar mill in Arkansas, the company said it is still “actively considering” building other steel facilities in the southern US.

Global steel production edges lower in February
February’s global raw steel output is tied with last December's for the fourth-lowest monthly production rate recorded over the past two years.

Fate of U.S. Steel hangs in the balance
The future of U.S. Steel remains unclear, but the proxy fight for control of the company is heating up. Shareholders will cast their votes on the company's future at the annual meeting in May.

Cliffs to idle Dearborn blast furnace, restart Cleveland furnace by July
Cleveland-Cliffs has decided to idle the steelmaking operations at its Dearborn Works in Michigan due to weak automotive demand.