On March 16, North America's largest iron ore pellet producer Cliffs Natural Resources Inc. announced that it has priced two tranches of a registered public offering of senior notes.
According to a company release, the offering includes a 10-year tranche of $700 million aggregate principal amount of 4.875 percent senior notes due April 1, 2021, and an additional issuance of $300 million aggregate principal amount of 6.25 percent senior notes due October 1, 2040. Cliffs expects to close the first tranche on March 23, 2011, and the second one on April 1, 2011, with each tranche subject to customary closing conditions.
The net proceeds from the issuance of the senior notes are expected to be used for financing a portion of the previously announced acquisition of Canadian iron ore mining company Consolidated Thompson Iron Mines Limited.
The notes are rated Baa3 by Moody's Investors Service and BBB- by Standard & Poor's Ratings Services, the company said, adding that Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated are serving as joint book-running managers for the offering.