Cleveland-Cliffs (CLF) Prices 60M Share Common Offering for Approx. Gross Proceeds of $326M

February 9, 2021 6:29 AM EST

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Cleveland-Cliffs Inc. (NYSE: CLF) today announced the pricing of its underwritten public offering (the “Offering”) of 60,000,000 common shares, par value $0.125 per share (the “Common Shares”), which consists of 40,000,000 currently outstanding Common Shares offered by ArcelorMittal North America Holdings LLC, an indirect, wholly-owned subsidiary of ArcelorMittal S.A. (the “Selling Shareholder”) and 20,000,000 Common Shares offered by the Company. The Company has also granted the underwriter a 30-day option to purchase an additional 9,000,000 Common Shares.

The Company will not receive any proceeds from the sale of the Selling Shareholder’s currently outstanding Common Shares in the Offering. Gross proceeds from the Offering of Common Shares by the Company are approximately $326 million. The Company intends to use the net proceeds from the Offering, plus cash on hand, to redeem up to approximately $334 million aggregate principal amount of its outstanding 9.875% Senior Secured Notes due 2025. The Company intends to use any remaining net proceeds following such redemption to reduce borrowings under its existing asset-based revolving credit facility. This press release does not constitute a notice of redemption of the 9.875% Senior Secured Notes due 2025.

BofA Securities is acting as underwriter for the Offering and may offer the Common Shares from time to time for sale in one or more transactions on the New York Stock Exchange, in the over-the-counter market, through negotiated transactions or otherwise at prevailing market prices, at prices related to prevailing market prices or at negotiated prices.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission (the “SEC”) and is effective.

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