Cliffs (CLF) To Redeem Senior Notes Due Jan 2018 To Cut Debt
Zacks Investment Research | Aug 19, 2016 05:57AM ET
Cliffs Natural Resources Inc. (NYSE:CLF) has announced its decision to redeem all of its outstanding Senior Notes due Jan 2018. This decision reiterates the company’s focus on reducing debt and interest expenses.
The principal amount due for the notes is around $284 million. Based on the conditions mentioned for the notes as well as the agreement governing it, the total amount payable to holders of the notes is roughly $301 million, excluding accrued and unpaid interest. When the notes are completely redeemed, Cliffs will save $17 million annually on interest payments. Holders will be provided with a notice on the redemption as well as the procedure for the same.
Cliffs is able to redeem the notes following the successful closure of its equity offering. The company will now have around four years before the next maturity of outstanding notes.
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