R/€ = 15.90 Change: 0.00
R/$ = 13.47 Change: 0.03
Au 1243.94 $/oz Change: 6.10
Pt 891.50 $/oz Change: 14.00
 
 
R/€ = 15.90 Change: 0.00
R/$ = 13.47 Change: 0.03
Au 1243.94 $/oz Change: 6.10
Pt 891.50 $/oz Change: 14.00
 
 
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Cleveland-Cliffs launches two debt offerings to fund first hot briquetted iron plant

5th December 2017 BY: Henry Lazenby
Creamer Media Deputy Editor: North America

VANCOUVER (miningweekly.com) – US iron-ore producer Cleveland-Cliffs has launched two debt offerings totalling $716-million to help fund its first hot briquetted iron (HBI) production plant – a $700-million expansion to Cliffs’ production capabilities targeting the electric arc furnace steel market.

Based in Cleveland, Ohio, Cleveland-Cliffs intends to offer a $400-million principal amount of senior secured notes due 2024 in an offering exempt from the registration requirements of the US Securities Act of 1933.

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The notes will be guaranteed by Cleveland-Cliffs’ domestic subsidiaries.

The company also announced that it intends to offer to sell $275-million principal amount of convertible senior notes due 2025, or up to $316.25-million principal amount of convertible notes if the underwriters exercise their over-allotment option in full, in a registered public offering under the Securities Act.

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Cleveland-Cliffs has chosen Toledo, Ohio as the site for the development. The NYSE-listed company expects to break ground for the construction of the HBI production plant in early 2018, with commercial production to follow in mid-2020.

The company has appointed Midrex Technologies to design, engineer and procure equipment for the new plant, which will have the nominal capacity to produce 1.6-million tons of HBI a year.

Cleveland-Cliffs’ NYSE-listed stock fell more than 6% following the news release, in after-market trading, changing hands at $6.34 a share. 

EDITED BY: Samantha Herbst Creamer Media Deputy Editor
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