Replies to post #2525 on Cleveland Cliffs Inc (CLF)

[DewDiligence]

The third step in the balance-sheet cleanup is a $250M tender offer for high-interest-rate bonds maturing in 2020 and 2021:

http://finance.yahoo.com/news/cliffs-natural-resources-inc-announces-210900879.html

When the dust settles, CLF’s balance sheet is going to look pretty nice.

[sts66]

New here (this board) - CLF and MSB just came to my attention a couple weeks ago, had barely started DD when all the great news for CLF came out - sheesh, coulda had a monster gain in just one week if I'd been more diligent about devoting time looking into CLF before their earnings report! Thinking of making a paired CLE/MSB buy, they're tied at the hip, so both should do well in 2017 and beyond unless I'm missing something?

[DewDiligence]

Early-redemption terms of new 2025 bonds:

https://www.sec.gov/Archives/edgar/data/764065/000076406517000050/a20170227-8xkxclosingofnot.htm

The Company may redeem the Notes, in whole or in part, on or after March 1, 2020, at the redemption prices set forth in the Indenture, plus accrued and unpaid interest… and prior to March 1, 2020, at a redemption price equal to 100% of the principal amount thereof plus a “make-whole” premium set forth in the Indenture, plus accrued and unpaid interest…

The Company may also redeem up to 35% of the aggregate principal amount of the Notes on or prior to March 1, 2020 at a redemption price equal to 105.750% of the principal amount thereof, plus accrued and unpaid interest...with the net cash proceeds of one or more equity offerings.

So there are three main cases.

[DewDiligence]

CLF completes the previously announced redemption of $649M (i.e. the entire amount) of the 7.75% and 8% bonds maturing in 2020:

http://finance.yahoo.com/news/cliffs-natural-resources-inc-completes-125400750.html