Replies to post #29447 on The Rising Influence of Rising Affluence

[DewDiligence]

CLF-STLC CC slides:

https://d1io3yog0oux5.cloudfront.net/_5143a591af400ce308144b0fc4097f0e/clevelandcliffs/files/pages/clevelandcliffs/db/1118/description/Cleveland-Cliffs_Announces_the_Acquisition_of_Stelco_-_Slides.pdf

[DewDiligence]

CLF addendum—You don’t see too many acquisitions that are immediately accretive to GAAP EPS, as CLF asserts that the Stelco deal will be in the post I’m replying to.

[DewDiligence]

CLF sells $600M of debt to_fund Stelco acquisition:

https://finance.yahoo.com/news/cleveland-cliffs-inc-announces-upsizing-201100254.html

Cleveland-Cliffs…announced today that it has upsized and priced an additional $600 million aggregate principal amount of Senior Guaranteed Notes due 2032… The Additional Notes will bear interest at an annual rate of 7.000% and will be issued at a price of 99.25% of their principal amount.

…The upsized offering reduces the amount of capital needed to be raised in the forthcoming take-out acquisition financing for the previously announced acquisition of Stelco… Pro-forma liquidity is expected to be approximately $4.3 billion following the completion of this offering.

CLF expects to close the Stelco acquisition in 4Q24.

[DewDiligence]

Stelco shareholders approve buyout by CLF:

https://finance.yahoo.com/news/cleveland-cliffs-announces-shareholder-approval-201500774.html

The Arrangement Resolution received support of 99.97% of the total votes cast for the Arrangement Resolution. The transaction is expected to close in the fourth quarter of 2024.

[DewDiligence]

CLF sells $1.8B of 5-8-yr debt at 6.875-7.375%:

https://finance.yahoo.com/news/cleveland-cliffs-inc-announces-upsizing-204500585.html

The $1.8B proceeds from today’s debt sale—together with the $600M proceeds from the debt CLF sold in Aug 2024 (#msg-174914148)—are more than enough to meet the net cash requirements of the Stelco acquisition (#msg-174755282).

[DewDiligence]

CLF closes Stelco acquisition:

https://finance.yahoo.com/news/cleveland-cliffs-completes-acquisition-stelco-160800815.html