NEW YORK (S&P Global Ratings) Oct. 2, 2020--S&P Global Ratings said today that it views Cleveland-Cliffs Inc.'s (Cliffs; B-/Negative/--) acquisition of ArcelorMittal USA LLC (AM USA; BBB-/Negative/--) for $1.4 billion in total consideration as credit neutral. The proposed transaction would more than double Cliffs' steelmaking capacity and increase its penetration in the auto end market. However, we expect pro forma adjusted debt to increase by $2.8 billion. Cliffs will fund the acquisition with about $500 million drawn on its asset-based lending (ABL) facility, $500 million in common equity, and $373 million of preferred stock. We will likely treat the preferred stock as debt because Cliffs can redeem the preferred shares at any time. In addition, Cliffs will assume about $1.9
