Cleveland-Cliffs Inc.'s New Senior Secured Notes Rated 'BB-'

FARMERS BRANCH (S&P Global Ratings) March 11, 2020--U.S.–based iron ore producer Cleveland-Cliffs Inc. (Cliffs) has revised its notes issuances in connection with the acquisition of all shares of AK Steel Holding Corp. common stock. Cliffs' plans to exchange $270 million and $392 million in AK Steel senior unsecured notes due 2025 and 2027 respectively, are unchanged. However, Cliffs will no longer be issuing $400 million in senior unsecured notes or $550 million in senior secured notes. Instead, the company has issued $725 million in senior secured notes, with the difference (about $225 million) expected in the form of additional drawing under the new $2 billion revolving credit facility. We are assigning a 'BB-' issue-level rating to the new senior secured

...March 11, 2020 FARMERS BRANCH (S&P Global Ratings) March 11, 2020--U.S.¡based iron ore producer Cleveland-Cliffs Inc. (Cliffs) has revised its notes issuances in connection with the acquisition of all shares of AK Steel Holding Corp. common stock. Cliffs' plans to exchange $270 million and $392 million in AK Steel senior unsecured notes due 2025 and 2027 respectively, are unchanged. However, Cliffs will no longer be issuing $400 million in senior unsecured notes or $550 million in senior secured notes. Instead, the company has issued $725 million in senior secured notes, with the difference (about $225 million) expected in the form of additional drawing under the new $2 billion revolving credit facility. We are assigning a '##-' issue-level rating to the new senior secured notes. They will bear interest at an annual rate of 6.75% and were issued at a price of 98.783 percent of their principal amount. S&P Global Ratings said the revised notes issuance does not affect any of its ratings on...

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