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Cliffs to Offer $750M in Unsecured, Guaranteed Notes


Cleveland-Cliffs is set to offer $750 million in unsecured guaranteed notes due in 2030.

“The offering is expected to close on April 14, 2023, subject to the satisfaction of customary closing conditions,” Cliffs said in a statement on Tuesday, April 11.

The Cleveland-based steelmaker said the offering is exempt from the registration requirements of the Securities Act of 1933, adding that the notes will bear interest at an annual rate of 6.75% and will be issued at par.

Also, the notes will be guaranteed on a senior unsecured basis by the company’s “material direct and indirect wholly owned domestic subsidiaries, other than certain excluded subsidiaries.”

The company said it intends to use the net proceeds from the notes “to repay a portion of the borrowings under the company’s existing asset-based revolving credit facility.”

By Ethan Bernard, ethan@steelmarketupdate.com

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