Replies to post #2826 on The Rising Influence of Rising Affluence

[Democritus_of_Abdera]

Re: CLF Equity Offering...

CLF has filed the prospectus for the anticipated equity financing to fund a portion of the Consolidated Thompson purchase (see #msg-63872080, etc.)

The prospectus can be found at: http://www.sec.gov/Archives/edgar/data/764065/000119312511159332/d424b5.htm

In summary, they plan to issue 10.35M shares (9M + 1.35 over-allotment option) which will increase their current 135.7M outstanding share count by about 7.5%.

The expected offering price is $87.29 (the closing price on June 3). They expect to receive about $870 net proceeds (if the over-allotment is exercised in full). These funds will offset the $750M outstanding from the Bridge credit facility they used for the initial financing of the Consolidated Thompson deal.

[DewDiligence]

CLF (+2%) is responding well to yesterday’s equity offering. All told, the long-awaited offering turned out to be a non-event for existing shareholders, just as I expected (#msg-63872080, bottom).