Replies to post #24363 on The Rising Influence of Rising Affluence

[Nebuchadnezzar]

music to my ears

[DewDiligence]

CLF—($25.00)—highest close since 2013 (eom).

[winchem21]

Cleveland-Cliffs to Fully Redeem 1.50% Convertible Senior Notes due 2025

CLF is using cash rather than the 38 million shares that they could have issued to redeem these notes. This cuts their current diluted share count another 7% in addition to the 10% diluted share count reduction from preferred buyback done in Q3 of 2021. Depending on the SP for the month prior, this will cost ~$750-$950 million if stock price averages &20 to $25 respectively. This was the first month CLF could do this and they could have waited until 2024 to take this action. The redemption of these removes another $294 million in long term debt. These bonds were originally issued to pay for nearly half of the Toledo HBI plant. This move demonstrates a large degree of confidence in continuing cash generation.

https://www.clevelandcliffs.com/news/news-releases/detail/539/cleveland-cliffs-to-fully-redeem-its-1-50-convertible

December 01, 2021 7:00am EST

CLEVELAND--(BUSINESS WIRE)-- Cleveland-Cliffs Inc. (NYSE: CLF) announced today that it has instructed the trustee to provide notice of redemption for all remaining $294 million of its 1.50% Convertible Senior Notes due 2025. The redemption will take place on January 18, 2022, the earliest possible date for redemption pursuant to the Indenture governing the Notes.

Noteholders may convert their Notes prior to the redemption date. Upon redemption or early conversion, the Company intends to pay 100 percent of the outstanding principal amount in cash.

This release is for informational purposes only and is neither an offer to buy nor a solicitation to sell any of the Notes. The foregoing does not constitute a notice of redemption under the Indenture governing the Notes and is qualified in its entirety by the redemption notice that will be distributed to the holders of the Notes. A notice of redemption setting forth the redemption procedures will be provided to registered holders of the Notes by The Depository Trust Company.