Cleveland-Cliffs Inc. Elevates Financial Game with $825M Unsecured Notes Cleveland-Cliffs Inc. Elevates Financial Game with $825M Unsecured Notes

Actionable Trade Ideas

always free

Amidst the hustle of the financial world, Cleveland-Cliffs Inc. (CLF) has taken a bold step by upsizing and pricing $825 million in senior unsecured guaranteed notes due 2032. In a strategic move exempt from the Securities Act of 1933’s registration requirements, Cleveland-Cliffs Inc. is ensuring robust financial growth ahead.

Notes Details and Strategic Implications

The Notes come with an annual interest rate of 7.000% and will be issued at par, backed by a senior unsecured guarantee from the company’s domestic subsidiaries. With the offering’s closing set for Mar 18, 2024, market watchers eagerly anticipate the impact this move will have on the company’s financial landscape.

Utilization of Proceeds and Forward Vision

By aligning the net proceeds from these Notes with available liquidity, Cleveland-Cliffs Inc. aims at a strategic maneuver to repurchase or redeem all existing 6.750% Senior Secured Notes due 2026. With a keen eye on futuristic financial stability, the company’s vision is anchored in prudent financial management.

Market Performance and Steely Projections

Despite facing a 6.4% dip in share value over the past year, Cleveland-Cliffs Inc. is gearing up for a robust 2024. Anticipating a steel shipment of 16.5 million net tons, combined with reduced steel unit costs, the company projects an impressive adjusted EBITDA gain of nearly $500 million compared to 2023 levels. A capital expenditure range of $675 million to $725 million sets the stage for a strong financial outlook.

For the first quarter of 2024, Cleveland-Cliffs Inc. anticipates a substantial surge in adjusted EBITDA, hinting at a bullish start to the financial year unmatched by previous quarters.

Market Comparison amidst Strategic Moves

While Cleveland-Cliffs Inc. charts its financial course with precision, other players in the industry are also making strategic moves. Companies like United States Steel Corporation, Carpenter Technology Corporation, and Alpha Metallurgical Resources Inc. are honing their strategies in the basic materials space, adding to the dynamic landscape of financial maneuvers.


As Cleveland-Cliffs Inc. forges ahead with its strategic financial moves, the market is poised for heightened activity and potential growth. Investors are eyeing these developments keenly, eager to assess the impact of these financial strategies on the company’s bottom line and the industry at large.

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.