CLEVELAND, Aug. 17, 2016 /PRNewswire/ -- Cliffs Natural
Resources Inc. (NYSE: CLF) announced today that it will
redeem the entirety of its outstanding Senior Notes due
January 2018 (the "Notes"). The
aggregate principal amount outstanding of the Notes is
approximately $284 million. Pursuant
to the terms of the Notes and the Indenture governing the
Notes, the Company expects total payment to holders of
the Notes to be approximately $301
million in aggregate, plus accrued and unpaid interest.
Lourenco Goncalves, Cliffs'
Chairman, President and Chief Executive Officer, said, "The
successful completion of the equity offering this week has allowed
us to move forward with the retirement of the 2018 Notes. This
action further confirms our commitment to our top priorities in
capital allocation: paying down debt and reducing interest
expense." Mr. Goncalves added, "We now have nearly four years until
our next maturity comes due. With this step, we have marked yet
another milestone in the successful turnaround of Cliffs."
Upon completion of the redemption, Cliffs' annualized interest
expense is expected to be reduced by approximately $17 million.
A notice of redemption setting forth the redemption procedures
is being provided to holders of the Notes through
the Depository Trust Company. Copies of the notice of
redemption and additional information relating to the procedures
for redemption may be obtained from the trustee and paying agent,
U.S. Bank, Global Corporate Trust Services, 111 Filmore Ave E;
St. Paul, MN 55107; telephone:
1-800-934-6802.
About Cliffs Natural Resources Inc.
Cliffs Natural
Resources Inc. is a leading mining and natural resources company in
the United States. The Company 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. Cliffs also operates an iron ore
mining complex in Western
Australia. Driven by the core values of safety, social,
environmental and capital stewardship, Cliffs' employees endeavor
to provide all stakeholders operating and financial
transparency.
Forward-Looking Statements
This release contains
statements that constitute "forward-looking statements" within the
meaning of the federal securities laws. As a general matter,
forward-looking statements relate to anticipated trends and
expectations rather than historical matters. Forward-looking
statements are subject to uncertainties and factors relating to
Cliffs' operations and business environment that are difficult to
predict and may be beyond our control. Such uncertainties and
factors may cause actual results to differ materially from those
expressed or implied by the forward-looking statements. These
statements speak only as of the date of this release, and we
undertake no ongoing obligation, other than that imposed by law, to
update these statements. Uncertainties and risk factors that
could affect Cliffs' future performance and cause results to differ
from the forward-looking statements in this release include, but
are not limited to: trends affecting our financial condition,
results of operations or future prospects, particularly the
continued volatility of iron ore prices; availability of capital
and our ability to maintain adequate liquidity; our level of
indebtedness could limit cash flow available to fund working
capital, capital expenditures, acquisitions and other general
corporate purposes or ongoing needs of our business, which could
prevent us from fulfilling our debt obligations; continued
weaknesses in global economic conditions, including downward
pressure on prices caused by oversupply or imported products,
including the impact of any reduced barriers to trade, recently
filed and forthcoming trade cases, reduced market demand and any
change to the economic growth rate in China; our ability to reach agreement with our
iron ore customers regarding any modifications to sales contract
provisions, renewals or new arrangements; uncertainty relating to
restructurings in the steel industry and/or affecting the steel
industry; our ability to maintain appropriate relations with unions
and employees and enter into or renew collective bargaining
agreements on satisfactory terms; the impact of our customers
reducing their steel production or using other methods to produce
steel; our ability to successfully execute an exit option for
our Canadian Entities that minimizes the cash outflows and
associated liabilities of such entities, including the CCAA
process; our ability to successfully identify and consummate any
strategic investments and complete planned divestitures; our
ability to successfully diversify our product mix and add new
customers beyond our traditional blast furnace clientele; the
outcome of any contractual disputes with our customers, joint
venture partners or significant energy, material or service
providers or any other litigation or arbitration; the ability of
our customers and joint venture partners to meet their obligations
to us on a timely basis or at all; the impact of price-adjustment
factors on our sales contracts; changes in sales volume or mix; our
actual levels of capital spending; our actual economic iron ore
reserves or reductions in current mineral estimates, including
whether any mineralized material qualifies as a reserve; events or
circumstances that could impair or adversely impact the viability
of a mine and the carrying value of associated assets, as well as
any resulting impairment charges; the results of prefeasibility and
feasibility studies in relation to projects; impacts of existing
and increasing governmental regulation and related costs and
liabilities, including failure to receive or maintain required
operating and environmental permits, approvals, modifications or
other authorization of, or from, any governmental or regulatory
entity and costs related to implementing improvements to ensure
compliance with regulatory changes; our ability to cost-effectively
achieve planned production rates or levels; uncertainties
associated with natural disasters, weather conditions,
unanticipated geological conditions, supply or price of energy,
equipment failures and other unexpected events; adverse changes in
currency values, currency exchange rates, interest rates and tax
laws; risks related to international operations; availability of
capital equipment and component parts; the potential existence of
significant deficiencies or material weakness in our internal
control over financial reporting; and problems or uncertainties
with productivity, tons mined, transportation, mine-closure
obligations, environmental liabilities, employee-benefit costs and
other risks of the mining industry. For additional factors
affecting the business of Cliffs, refer to Part I – Item 1A.
Risk Factors of our Annual Report on Form 10-K for the year ended
December 31, 2015. You are urged to
carefully consider these risk factors.
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SOURCE Cliffs Natural Resources Inc.