Cleveland-Cliffs Inc Stock Price, News & Analysis

Cleveland-Cliffs Inc. (NYSE: CLF) has received a "no-action letter" from the Canadian Competition Bureau, indicating that the Commissioner of Competition does not intend to challenge Cliffs' pending acquisition of Stelco Holdings Inc. This clearance marks the conclusion of all required antitrust reviews for the acquisition. Earlier this week, Cliffs announced the expiration of the U.S. Department of Justice antitrust review period and successfully raised the remaining capital to fund the transaction. Lourenco Goncalves, Cliffs' Chairman, President and CEO, expressed satisfaction with these three important milestones and stated that the company remains on track to close the transaction this quarter, pending the satisfaction of remaining closing conditions.

Cleveland-Cliffs Inc. (NYSE: CLF) has announced the pricing of $1.8 billion in Senior Guaranteed Notes, split equally between 2029 and 2033 maturities. The 2029 Notes will bear interest at 6.875%, while the 2033 Notes will bear interest at 7.375%, both issued at par. The offering, expected to close on October 22, 2024, will fund part of the cash consideration for the Stelco Holdings Inc. acquisition, anticipated to complete in Q4 2024.

The Notes will be guaranteed by Cliffs' material domestic subsidiaries and are subject to a special mandatory redemption if the Stelco acquisition is not completed by April 14, 2025 (extendable to July 14, 2025). The offering is exempt from SEC registration and is only available to qualified institutional buyers and non-U.S. persons under specific exemptions.

Cleveland-Cliffs Inc. (NYSE: CLF) has announced its intention to offer $1.6 billion in Senior Guaranteed Notes, split equally between notes due in 2029 and 2033. The offering is exempt from SEC registration requirements and the notes will be guaranteed by Cliffs' major domestic subsidiaries. The proceeds are intended to partially finance the cash consideration for the previously announced Stelco Holdings Inc. acquisition, expected to close in Q4 2024.

The offering is not contingent on the Stelco acquisition's completion. However, if the acquisition is not consummated by April 14, 2025 (extendable to July 14, 2025) or if Cliffs terminates the arrangement, the notes will be subject to a special mandatory redemption at 100% of the initial issue price plus accrued interest. The notes are being offered only to qualified institutional buyers and non-U.S. persons under specific exemptions.

Cleveland-Cliffs Inc. (NYSE: CLF) has announced a significant milestone in its pending acquisition of Stelco Holdings Inc. The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act) has expired, clearing a major regulatory hurdle for the transaction. This development marks a important step towards finalizing the acquisition, which is anticipated to close in the fourth quarter of 2024, subject to other customary closing conditions and approvals.

Lourenco Goncalves, Cliffs' Chairman, President and CEO, expressed excitement about this progress, highlighting the transformative nature of the Stelco acquisition. He emphasized that this move will enhance Cleveland-Cliffs' resilience and geographic diversification in the highly competitive global market.

Cleveland-Cliffs (NYSE: CLF) is set to host key U.S. government officials at its Coatesville, Pennsylvania steel plant on October 11. Visitors include U.S. Trade Representative Katherine Tai, Acting Labor Secretary Julie Su, and Congresswoman Chrissy Houlahan, along with USW District 10 Director Bernie Hall.

The visit follows USTR's recent decision on increased Section 301 tariffs on Chinese imports and an ongoing investigation into unfair trade practices in the Chinese shipbuilding sector. Cleveland-Cliffs Coatesville specializes in steel plate production for military and commercial shipbuilding.

CEO Lourenco Goncalves will host a fireside chat with the dignitaries, which will be live-streamed on the company's YouTube channel at 11:00 a.m. ET. The event aims to showcase the partnership between Cleveland-Cliffs and the USW in producing advanced steel plate for critical industries.

Cleveland-Cliffs Inc. (NYSE: CLF) announced that Stelco Holdings Inc. (TSX: STLC) shareholders overwhelmingly approved the special resolution for Cliffs' indirect acquisition of Stelco. The resolution received 99.97% support from total votes cast. The transaction is expected to close in the fourth quarter of 2024, subject to remaining conditions. Upon closing, Stelco will become a wholly-owned subsidiary of Cliffs.

Lourenco Goncalves, Cliffs' Chairman, President, and CEO, expressed enthusiasm for the strong shareholder support and the potential benefits for both Canada and the United States. The acquisition aims to create a stronger North America-based steel producer in collaboration with Stelco and the USW in Canada.

Cleveland-Cliffs Inc. (NYSE: CLF) reaffirms its commitment to the Middletown Works decarbonization project, which involves replacing the existing blast furnace with a 2.5mtpa Hydrogen-Ready Direct Reduced Iron (DRI) Plant and two 120 MW Electric Melting Furnaces (EMF). The company is in active negotiations with the U.S. Department of Energy for up to $500 million in funding.

The project aims to reduce carbon emissions intensity by over 90% when using clean hydrogen, while maintaining the facility's 3 million net tons annual production capacity. It's expected to reduce production costs by $150 per net ton of liquid steel, resulting in $450 million annual savings. The investment will secure 2,500 existing jobs and create 170 additional jobs, with 1,200 building trades jobs during peak construction.

Cleveland-Cliffs Inc. (NYSE: CLF) has successfully amended its $4.75 billion Asset-Based Lending (ABL) facility, preparing for the pending acquisition of Stelco Holdings Inc. The company has replaced Goldman Sachs' participation with increased commitments from various banks, including Bank of America, Wells Fargo, and J.P. Morgan. The capital request was three times over-subscribed, demonstrating strong support from banking partners.

CEO Lourenco Goncalves emphasized that this amendment reinforces Cliffs' strong financial position and ability to close the Stelco transaction efficiently in Q4 2024. The amended ABL matures in 2028, and as of the amendment's finalization, Cliffs had no net borrowings on the facility. This move positions the company for further growth in the United States and Canada.

Cleveland-Cliffs Inc. (NYSE: CLF) has commended President Biden's reported decision to block the foreign takeover of U.S. Steel by Japan's Nippon Steel. CEO Lourenco Goncalves emphasized the importance of American ownership in the steel industry for national security and domestic manufacturing. He criticized U.S. Steel's threats to shut down production and fire union workers if the deal doesn't close, calling it a 'pathetic blackmail attempt'.

Goncalves highlighted the United Steelworkers union's opposition to Nippon Steel, citing its history of unfair trade practices. Cleveland-Cliffs, with support from the USW and financing from J.P. Morgan and Wells Fargo, has expressed readiness to acquire and invest in any union-represented assets that U.S. Steel might shut down, aiming to protect union jobs and local communities.