Cleveland-Cliffs Inc’s $725 Million Senior Secured Notes

Jones Day represented Cleveland-Cliffs Inc in connection with the offering.

Cleveland-Cliffs Inc. (NYSE: CLF) announced that it has priced $725 million aggregate principal amount of Senior Secured Notes due 2026 in an offering that is exempt from the registration requirements of the Securities Act of 1933.

The Notes will bear interest at an annual rate of 6.75 percent and will be issued at a price of 98.783 percent of their principal amount.

The Notes will be, following the closing of the Merger (as defined below), guaranteed on a senior secured basis by Cliffs’ material wholly owned domestic subsidiaries, including AK Steel Holding Corporation and its material wholly owned subsidiaries (subject in each case to certain exceptions and permitted liens), and secured by (i) a first-priority lien on substantially all of Cliffs’ assets and the assets of the guarantors (other than accounts receivable and other rights to payment, inventory, as-extracted collateral, investment property, certain general intangibles and commercial tort claims, certain mobile equipment, commodities accounts, deposit accounts, securities accounts and other related assets and proceeds and products of each of the foregoing, and (ii) a second-priority lien on the ABL Collateral, which is junior to a first-priority lien for the benefit of the lenders under Cliffs senior secured asset-based credit facility.

Cleveland-Cliffs is the largest and oldest independent iron ore mining company in the United States. Cleveland-Cliffs is a major supplier of iron ore pellets to the North American steel industry from its mines and pellet plants located in Michigan and Minnesota.

The Jones Day team included Michael Solecki (Picture), Kevin Samuels and Andrew Thomas.

Involved fees earner: Kevin Samuels – Jones Day; Michael Solecki – Jones Day; Andrew Thomas – Jones Day;

Law Firms: Jones Day;

Clients: Cleveland-Cliffs Inc;

Author: Ambrogio Visconti