Cleveland-Cliffs (NYSE: CLF) sells $850M 7.625% notes to refinance debt

Rhea-AI Filing Summary

Cleveland-Cliffs Inc. reported that it issued $850 million aggregate principal amount of 7.625% Senior Guaranteed Notes due 2034 in a private offering exempt from Securities Act registration. The notes bear interest at 7.625% per year, payable on January 15 and July 15, and mature on January 15, 2034. They are unsecured senior obligations of the company and are guaranteed on an unsecured senior basis by its material wholly owned domestic subsidiaries.

The indenture includes covenants limiting certain liens, sale-leaseback deals, mergers and major asset sales, and requires a 101% offer to repurchase upon a defined change of control triggering event. Cleveland-Cliffs may redeem the notes at a make-whole price before January 15, 2029, at specified premiums that step down after that date. The company intends to use the net proceeds to redeem $685 million of various senior notes due 2027 and to repay borrowings under its asset-based credit facility.

Insights

Corporate credit and capital structure analyst

Cleveland-Cliffs refinances near-term 2027 debt with longer-dated 2034 notes.

Cleveland-Cliffs issued $850,000,000 of 7.625% Senior Guaranteed Notes due 2034, adding long-term unsecured senior debt that is guaranteed by key domestic subsidiaries. This transaction extends the company’s debt maturity profile, with final maturity on January 15, 2034, and introduces semi-annual interest payments at a fixed 7.625% coupon.

The company intends to use the net proceeds to redeem $685 million of various senior notes due 2027 and to repay borrowings under its asset-based credit facility. That shifts obligations from shorter-dated notes and revolving borrowings into a single longer-dated bond, while covenant protections in the indenture restrict new liens, sale-leasebacks, and major structural changes. Redemption and change-of-control provisions, including the 101% repurchase requirement, shape how future corporate actions could affect these notes.

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): September 8, 2025

CLEVELAND-CLIFFS INC.

(Exact name of registrant as specified in its charter)

Ohio

1-8944

34-1464672

(State or Other Jurisdiction of Incorporation or Organization)

(Commission File Number)

(IRS Employer Identification No.)

200 Public Square,

Suite 3300,

Cleveland,

Ohio

44114-2315

(Address of Principal Executive Offices)

(Zip Code)

Registrant's telephone number, including area code: (216) 694-5700

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐						Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐						Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐						Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐						Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered:

Common Shares, par value $0.125 per share

CLF

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (Section 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (Section 240.12b-2 of this chapter).
Emerging growth company			☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 1.01 Entry into a Material Definitive Agreement.

On September 8, 2025, Cleveland-Cliffs Inc. (the “Company”) issued $850,000,000 aggregate principal amount of 7.625% Senior Guaranteed Notes due 2034 (the “Notes”) in a private transaction exempt from the registration requirements of the Securities Act of 1933 (the “Securities Act”). The Notes have not been, and will not be, registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act.

The Notes were issued pursuant to an indenture, dated as of September 8, 2025 (the “Indenture”), among the Company, the guarantors party thereto (the “Guarantors”) and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”).

The Notes bear interest at an annual rate of 7.625%. Interest on the Notes is payable semi-annually in arrears on January 15 and July 15 of each year, commencing on January 15, 2026. The Notes will mature on January 15, 2034.

The Notes are the Company’s general unsecured senior obligations and rank equally in right of payment with all of the Company’s existing and future unsecured senior indebtedness and will rank senior in right of payment to all of the Company’s existing and future subordinated indebtedness. The Notes are effectively subordinated to the Company’s existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness. The Notes are guaranteed on an unsecured senior basis by the Company’s material direct and indirect wholly‑owned domestic subsidiaries and, therefore, are structurally senior to any of the Company’s existing and future indebtedness that is not guaranteed by such Guarantors and are structurally subordinated to all existing and future indebtedness and other liabilities of the Company’s subsidiaries that do not guarantee the Notes.

The terms of the Notes are governed by the Indenture. The Indenture contains customary covenants that, among other things, limit the Company’s and its subsidiaries’ ability to create certain liens on property that secure indebtedness, enter into sale and leaseback transactions, merge or consolidate with another company, and transfer or sell all or substantially all of the Company’s assets. Upon the occurrence of a “change of control triggering event,” as defined in the Indenture, the Company is required to offer to repurchase the Notes at 101% of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date.

The Company may, at its option, redeem some or all of the Notes at any time and from time to time prior to January 15, 2029, at a price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, plus a “make-whole” premium.

From and after January 15, 2029, the Company may, at its option, redeem some or all of the Notes at an initial redemption price of 103.813% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. Such redemption price will decline each year after January 15, 2029, and will be 100% of the principal amount of the Notes to be redeemed, plus any accrued and unpaid interest, beginning on January 15, 2031.

In addition, at any time and from time to time on or prior to January 15, 2029, the Company may redeem in the aggregate up to 35% of the original aggregate principal amount of the Notes (calculated after giving effect to any issuance of additional notes) with the net cash proceeds of certain equity offerings, at a redemption price of 107.625%, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, so long as at least 65% of the original aggregate principal amount of the Notes (calculated after giving effect to any issuance of additional notes) issued under the Indenture remain outstanding after each such redemption.

The Indenture contains customary events of default, including failure to make required payments, failure to comply with certain agreements or covenants, failure to pay or acceleration of certain other indebtedness, certain events of bankruptcy and insolvency, and failure to pay certain judgments. An event of default under the Indenture would allow either the Trustee or the holders of at least 25% in aggregate principal amount of the then-outstanding Notes to accelerate, or in certain cases, would automatically cause the acceleration of, the amounts due under the Notes.

The Company intends to use the net proceeds from the Notes to redeem all of the $685 million combined aggregate principal amount of its outstanding 5.875% senior guaranteed notes due 2027, 7.000% senior

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guaranteed notes due 2027 and Cleveland-Cliffs Steel Corporation’s (f/k/a AK Steel Corporation) 7.000% senior notes due 2027 and to repay borrowings under its asset-based credit facility.

The foregoing description of the Indenture does not purport to be complete and is qualified in its entirety by reference to the full text of the Indenture, a copy of which is anticipated to be filed as an exhibit to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2025.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The terms of the Indenture and the Notes are summarized in Item 1.01 of this Current Report on Form 8-K and are incorporated into this Item 2.03 by reference.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

						CLEVELAND-CLIFFS INC.
Date:			September 8, 2025			By:			/s/ James D. Graham
						Name:			James D. Graham
						Title:			Executive Vice President, Chief Legal and Administrative Officer & Secretary

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FAQ

What type of debt did Cleveland-Cliffs (CLF) issue in this 8-K?

Cleveland-Cliffs issued $850,000,000 aggregate principal amount of 7.625% Senior Guaranteed Notes due 2034 in a private, unregistered offering under the Securities Act exemptions.

What will Cleveland-Cliffs use the $850 million note proceeds for?

The company intends to use the net proceeds to redeem $685 million of outstanding senior notes due 2027 and to repay borrowings under its asset-based credit facility.

What are the key terms of Cleveland-Cliffs’ new 7.625% notes?

The notes bear interest at 7.625% per year, pay interest semi-annually on January 15 and July 15 starting January 15, 2026, and mature on January 15, 2034. They are general unsecured senior obligations guaranteed by material wholly owned domestic subsidiaries.

Does Cleveland-Cliffs have the option to redeem the 2034 notes early?

Yes. Cleveland-Cliffs may redeem the notes at a make-whole price before January 15, 2029, and at specified premiums starting at 103.813% from that date, declining to 100% beginning January 15, 2031.

What happens to the notes if there is a change of control at Cleveland-Cliffs?

If a defined change of control triggering event occurs, Cleveland-Cliffs must offer to repurchase the notes at 101% of their principal amount, plus accrued and unpaid interest to the repurchase date.

Are the new Cleveland-Cliffs notes secured or unsecured, and how do they rank?

The notes are general unsecured senior obligations, ranking equally with existing and future unsecured senior debt, senior to subordinated debt, and effectively subordinated to secured debt up to the value of its collateral.