Cleveland-Cliffs Inc.'s Planned $750 Million Note Issuance Rated 'B+'

DALLAS (S&P Global Ratings) April 29, 2019--S&P Global Ratings today assigned its 'B+' issue-level rating to U.S.-based iron ore producer Cleveland-Cliffs Inc.'s proposed $750 million guaranteed senior unsecured notes due 2027. The company will use proceeds primarily to redeem all of the outstanding 4.875% non-guaranteed senior unsecured notes due 2021 (about $114 million outstanding) and to fund a $600 million tender offer for the 5.75% guaranteed senior unsecured notes due 2025. The balance will be applied to fees and expenses related to the transaction and for general corporate purposes. The issuer credit rating is unchanged at 'B+', with a stable outlook. We do not expect this transaction to have a material impact on adjusted leverage which we forecast will remain

...April 29, 2019 DALLAS (S&P Global Ratings) April 29, 2019--S&P Global Ratings today assigned its 'B+' issue-level rating to U.S.-based iron ore producer Cleveland-Cliffs Inc.'s proposed $750 million guaranteed senior unsecured notes due 2027. The company will use proceeds primarily to redeem all of the outstanding 4.875% non-guaranteed senior unsecured notes due 2021 (about $114 million outstanding) and to fund a $600 million tender offer for the 5.75% guaranteed senior unsecured notes due 2025. The balance will be applied to fees and expenses related to the transaction and for general corporate purposes. The issuer credit rating is unchanged at 'B+', with a stable outlook. We do not expect this transaction to have a material impact on adjusted leverage which we forecast will remain below 4x. For the issuer rating rationale, see the research update on Cleveland-Cliffs Inc. published on April 15, 2018. RECOVERY ANALYSIS Key analytical factors - Cliffs' proposed capital structure consists...

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