Cleveland, Ohio-based iron ore pellet producer Cliffs Natural Resources Inc. Wednesday announced today that it has priced two tranches of a registered public offering of Senior Notes. A 10-year tranche includes $500 million aggregate principal amount of 4.80 percent Senior Notes due October 2020, and a 30-year tranche includes $500 million aggregate principal amount of 6.25 percent Senior Notes due October 2040. Cliffs expects to close the offering on September 20, 2010, subject to customary closing conditions. The net proceeds from the issuance of the Senior Notes are expected to be used for the repayment of all of the borrowings outstanding under the Company's credit facility, as well as for general corporate purposes, which may include, among other things, the funding of certain capital expenditures and other strategic transactions.
The Senior Notes are rated Baa3 by Moody's Investors Service and BBB- by Standard & Poor's Ratings Services. Banc of America Securities LLC and J.P. Morgan Securities LLC are serving as joint book-running managers for the offering.