Cleveland Cliffs Inc (CLF)

[DewDiligence]

CLF sells $500M* of 8-year unsecured bonds at 5.75%:

http://finance.yahoo.com/news/cliffs-natural-resources-inc-announces-200600125.html

The Notes will bear interest at an annual rate of 5.75 percent and will be issued at a price of 100.00 percent of their principal amount. The Notes will be guaranteed on a senior unsecured basis by the Company's material direct and indirect wholly-owned domestic subsidiaries. The offering is expected to close on February 27, 2017, subject to customary closing conditions.

The Company intends to use the net proceeds from the offering of the Notes, along with a portion of the net proceeds from its recently announced common share offering, to redeem all of its outstanding 8.00 percent 1.5 lien senior secured notes due 2020 and 7.75 percent second lien senior secured notes due 2020.

As I’m typing, the stock is down 1.5%—but well above the $10.75 price of the upsized stock offering (#msg-128608730). As a CLF long, I consider the transactions announced today to be about as bullish as I could possibly have hoped.

*Reduced from the originally planned $600M due to the upsized stock offering (#msg-128608730).