CLEVELAND, Aug. 9, 2016 /PRNewswire/ -- Cliffs Natural
Resources Inc. (NYSE: CLF) today announced the commencement of an
underwritten public offering of $300
million of its common shares ("Common Shares") or up to an
aggregate of $345 million of Common
Shares if the underwriters exercise their option to purchase
additional Common Shares in full (the "Offering").
The Company intends to use the net proceeds received from the
Offering for general corporate purposes, including the repayment of
debt, in particular its senior notes due January 2018.
BofA Merrill Lynch, Credit Suisse, Goldman, Sachs & Co. and
Deutsche Bank Securities are acting as joint bookrunners for the
Offering.
The Offering will be made only by means of a prospectus. A copy
of the preliminary prospectus related to the Offering, when
available, may be obtained for free by visiting the SEC's website
at www.sec.gov. Alternatively, when available, copies may be
obtained by contacting BofA Merrill Lynch, NC1-004-03-43, 200 North
College Street, 3rd floor, Charlotte, NC 28255-0001, Attn:
Prospectus Department, Email:
dg.prospectus_requests@baml.com; Credit Suisse Securities
(USA) LLC, Attn: Prospectus
Department, One Madison Avenue, New York,
NY 10010, or by calling toll-free at (800) 221-1037 or by
email at newyork.prospectus@credit-suisse.com; Goldman, Sachs &
Co., Prospectus Department, 200 West Street, New York, NY 10282, telephone: 1-866-471-2526,
facsimile: 212-902-9316 or by emailing
prospectus-ny@ny.email.gs.com.
A registration statement relating to these securities has been
filed with the Securities and Exchange Commission but has not yet
become effective. These securities may not be sold nor may offers
to buy be accepted prior to the time the registration statement
becomes effective. This press release does not constitute an offer
to purchase securities or a solicitation of an offer to sell any
securities or an offer to sell or the solicitation of an offer to
purchase any securities, nor does it constitute an offer or
solicitation in any jurisdiction in which such offer or
solicitation is unlawful.
About Cliffs Natural Resources Inc.
Cliffs Natural Resources Inc. is a leading mining and natural
resources company in the United
States. The Company is a major supplier of iron ore pellets
to the North American steel industry from its mines and pellet
plants located in Michigan and
Minnesota. Cliffs also operates an
iron ore mining complex in Western
Australia. Driven by the core values of safety, social,
environmental and capital stewardship, Cliffs' employees endeavor
to provide all stakeholders operating and financial
transparency.
Forward-Looking Statements
This release contains statements that constitute
"forward-looking statements" within the meaning of the federal
securities laws. As a general matter, forward-looking
statements relate to anticipated trends and expectations rather
than historical matters. Forward-looking statements are
subject to uncertainties and factors relating to Cliffs' operations
and business environment that are difficult to predict and may be
beyond our control. Such uncertainties and factors may cause
actual results to differ materially from those expressed or implied
by the forward-looking statements. These statements speak
only as of the date of this release, and we undertake no ongoing
obligation, other than that imposed by law, to update these
statements. Uncertainties and risk factors that could affect
Cliffs' future performance and cause results to differ from the
forward-looking statements in this release include, but are not
limited to: trends affecting our financial condition, results of
operations or future prospects, particularly the continued
volatility of iron ore prices; availability of capital and our
ability to maintain adequate liquidity; our level of indebtedness
could limit cash flow available to fund working capital, capital
expenditures, acquisitions and other general corporate purposes or
ongoing needs of our business, which could prevent us from
fulfilling our debt obligations; continued weaknesses in global
economic conditions, including downward pressure on prices caused
by oversupply or imported products, including the impact of any
reduced barriers to trade, recently filed and forthcoming trade
cases, reduced market demand and any change to the economic growth
rate in China; our ability to
reach agreement with our iron ore customers regarding any
modifications to sales contract provisions, renewals or new
arrangements; uncertainty relating to restructurings in the steel
industry and/or affecting the steel industry; our ability to
maintain appropriate relations with unions and employees and enter
into or renew collective bargaining agreements on satisfactory
terms; the impact of our customers reducing their steel production
or using other methods to produce steel; our ability to
successfully execute an exit option for our Canadian Entities that
minimizes the cash outflows and associated liabilities of such
entities, including the CCAA process; our ability to successfully
identify and consummate any strategic investments and complete
planned divestitures; our ability to successfully diversify our
product mix and add new customers beyond our traditional blast
furnace clientele; the outcome of any contractual disputes with our
customers, joint venture partners or significant energy, material
or service providers or any other litigation or arbitration; the
ability of our customers and joint venture partners to meet their
obligations to us on a timely basis or at all; the impact of
price-adjustment factors on our sales contracts; changes in sales
volume or mix; our actual levels of capital spending; our actual
economic iron ore reserves or reductions in current mineral
estimates, including whether any mineralized material qualifies as
a reserve; events or circumstances that could impair or adversely
impact the viability of a mine and the carrying value of associated
assets, as well as any resulting impairment charges; the results of
prefeasibility and feasibility studies in relation to projects;
impacts of existing and increasing governmental regulation and
related costs and liabilities, including failure to receive or
maintain required operating and environmental permits, approvals,
modifications or other authorization of, or from, any governmental
or regulatory entity and costs related to implementing improvements
to ensure compliance with regulatory changes; our ability to
cost-effectively achieve planned production rates or levels;
uncertainties associated with natural disasters, weather
conditions, unanticipated geological conditions, supply or price of
energy, equipment failures and other unexpected events; adverse
changes in currency values, currency exchange rates, interest rates
and tax laws; risks related to international operations;
availability of capital equipment and component parts; the
potential existence of significant deficiencies or material
weakness in our internal control over financial reporting; and
problems or uncertainties with productivity, tons mined,
transportation, mine-closure obligations, environmental
liabilities, employee-benefit costs and other risks of the mining
industry. For additional factors affecting the business of Cliffs,
refer to Part I – Item 1A. Risk Factors of our Annual Report on
Form 10-K for the year ended December 31,
2015. You are urged to carefully consider these risk
factors.
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SOURCE Cliffs Natural Resources Inc.