DEBT AND CREDIT FACILITIES (Tables)
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12 Months Ended |
Dec. 31, 2021 |
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| Debt Disclosure [Abstract] |
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| Schedule Of Long-Term Debt |
The following represents a summary of our long-term debt:
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| (In Millions) |
| December 31, 2021 |
| Debt Instrument |
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Issuer1
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Annual Effective Interest Rate |
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Total Principal Amount |
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Unamortized Debt Issuance Costs |
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Unamortized Premiums (Discounts) |
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Total Debt |
| Senior Secured Notes: |
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9.875% 2025 Senior Secured Notes |
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Cliffs |
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10.57% |
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$ |
607
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$ |
(4) |
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$ |
(13) |
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$ |
590
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6.750% 2026 Senior Secured Notes |
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Cliffs |
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6.99% |
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845
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(16) |
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(7) |
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822
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| Senior Unsecured Notes: |
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1.500% 2025 Convertible Senior Notes |
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Cliffs |
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6.26% |
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294
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(3) |
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(39) |
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252
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7.000% 2027 Senior Notes |
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Cliffs |
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9.24% |
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73
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—
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(7) |
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66
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7.000% 2027 AK Senior Notes |
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AK Steel |
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9.24% |
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56
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—
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(5) |
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51
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5.875% 2027 Senior Notes |
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Cliffs |
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6.49% |
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556
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(3) |
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(15) |
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538
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4.625% 2029 Senior Notes |
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Cliffs |
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4.63% |
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500
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(8) |
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—
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492
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4.875% 2031 Senior Notes |
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Cliffs |
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4.88% |
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500
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(8) |
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—
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492
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6.250% 2040 Senior Notes |
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Cliffs |
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6.34% |
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263
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(2) |
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(3) |
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258
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| IRBs due 2024 to 2028 |
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AK Steel |
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Various |
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66
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—
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2
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68
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ABL Facility3
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Cliffs2
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1.87% |
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4,500
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—
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—
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1,609
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| Total long-term debt |
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$ |
5,238
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1 Unless otherwise noted, references in this column and throughout this NOTE 8 - DEBT AND CREDIT FACILITIES to "Cliffs" are to Cleveland-Cliffs Inc., and references to "AK Steel" are to AK Steel Corporation (n/k/a Cleveland-Cliffs Steel Corporation).
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2 Refers to Cleveland-Cliffs Inc. as borrower under our ABL Facility.
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3 The total principal amount for the ABL Facility is stated at the maximum borrowing capacity.
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| (In Millions) |
| December 31, 2020 |
| Debt Instrument |
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Issuer1
|
|
Annual Effective Interest Rate |
|
Total Principal Amount |
|
Unamortized
Debt Issuance Costs |
|
Unamortized Premiums (Discounts) |
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Total Debt |
| Senior Secured Notes: |
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4.875% 2024 Senior Secured Notes |
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Cliffs |
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5.00% |
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$ |
395 |
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$ |
(3) |
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$ |
(1) |
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$ |
391 |
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9.875% 2025 Senior Secured Notes |
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Cliffs |
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10.57% |
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955 |
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(8) |
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(25) |
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922 |
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6.750% 2026 Senior Secured Notes |
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Cliffs |
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6.99% |
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845 |
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(20) |
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(9) |
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816 |
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| Senior Unsecured Notes: |
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7.625% 2021 AK Senior Notes |
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AK Steel |
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7.33% |
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34 |
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— |
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— |
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34 |
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7.500% 2023 AK Senior Notes |
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AK Steel |
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6.17% |
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13 |
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— |
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— |
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13 |
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6.375% 2025 Senior Notes |
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Cliffs |
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8.11% |
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64 |
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— |
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(4) |
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60 |
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6.375% 2025 AK Senior Notes |
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AK Steel |
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8.11% |
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29 |
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— |
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(2) |
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27 |
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1.500% 2025 Convertible Senior Notes |
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Cliffs |
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6.26% |
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296 |
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(4) |
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(49) |
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243 |
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5.750% 2025 Senior Notes |
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Cliffs |
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6.01% |
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396 |
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(3) |
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(4) |
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389 |
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7.000% 2027 Senior Notes |
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Cliffs |
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9.24% |
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73 |
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— |
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(8) |
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65 |
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7.000% 2027 AK Senior Notes |
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AK Steel |
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9.24% |
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56 |
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— |
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(6) |
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50 |
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5.875% 2027 Senior Notes |
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Cliffs |
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6.49% |
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556 |
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(4) |
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(18) |
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534 |
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6.250% 2040 Senior Notes |
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Cliffs |
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6.34% |
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263 |
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(2) |
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(3) |
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258 |
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| IRBs due 2024 to 2028 |
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AK Steel |
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Various |
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92 |
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— |
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2 |
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94 |
|
EDC Revolving Facility3
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* |
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3.25% |
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40 |
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— |
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— |
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18 |
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ABL Facility3
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Cliffs2
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2.15% |
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3,500 |
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— |
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— |
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1,510 |
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| Total debt |
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5,424 |
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| Less: current |
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34 |
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| Total long-term debt |
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$ |
5,390 |
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*Our subsidiaries, Fleetwood Metal Industries Inc. and The Electromac Group Inc., were the borrowers under the EDC Revolving Facility. |
1 Unless otherwise noted, references in this column and throughout this NOTE 8 - DEBT AND CREDIT FACILITIES to "Cliffs" are to Cleveland-Cliffs Inc., and references to "AK Steel" are to "AK Steel Corporation (n/k/a Cleveland-Cliffs Steel Corporation).
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2 Refers to Cleveland-Cliffs Inc. as borrower under our ABL Facility.
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3 The total principal amounts for the indicated credit facilities are stated at their respective maximum borrowing capacities.
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| Debt Instrument Redemption |
The following is a summary of redemption prices for our 4.625% 2029 Senior Notes:
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| Redemption Period |
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Redemption Price1
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Restricted Amount |
| Prior to March 1, 2024 - using the proceeds of equity issuance |
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104.625 |
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% |
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Up to 35% of original aggregate principal |
Prior to March 1, 20242
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100.000 |
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| Beginning March 1, 2024 |
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102.313 |
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| Beginning March 1, 2025 |
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101.156 |
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| Beginning on March 1, 2026 and thereafter |
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100.000 |
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1 Plus accrued and unpaid interest, if any, up to, but excluding, the redemption date.
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2 Plus a "make-whole" premium.
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The following is a summary of redemption prices for our 4.875% 2031 Senior Notes:
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| Redemption Period |
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Redemption Price1
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Restricted Amount |
| Prior to March 1, 2026 - using the proceeds of equity issuance |
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104.875 |
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% |
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Up to 35% of original aggregate principal |
Prior to March 1, 2026 2
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100.000 |
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| Beginning March 1, 2026 |
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102.438 |
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| Beginning March 1, 2027 |
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101.625 |
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| Beginning March 1, 2028 |
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100.813 |
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| Beginning on March 1, 2029 and thereafter |
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100.000 |
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1 Plus accrued and unpaid interest, if any, up to, but excluding, the redemption date.
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2 Plus a "make-whole" premium.
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| Summary of Borrowing Capacity Under the ABL Facility |
The following represents a summary of our borrowing capacity under the ABL Facility:
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(In Millions) |
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December 31,
2021 |
Available borrowing base on ABL Facility1
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$ |
4,500
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| Borrowings |
(1,609) |
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Letter of credit obligations2
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(175) |
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| Borrowing capacity available |
$ |
2,716
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1 As of December 31, 2021, the ABL Facility has a maximum available borrowing base of $4.5 billion. The borrowing base is determined by applying customary advance rates to eligible accounts receivable, inventory and certain mobile equipment.
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2 We issued standby letters of credit with certain financial institutions in order to support business obligations including, but not limited to, workers' compensation, employee severance, insurance, operating agreements and environmental obligations.
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| Summary of Debt Extinguished |
The following is a summary of the debt extinguished and the respective impact on extinguishment:
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(In Millions) |
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Year Ended
December 31, 2021 |
|
Debt Extinguished |
|
(Loss) on Extinguishment |
| 9.875% 2025 Senior Secured Notes |
$ |
347
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$ |
(47) |
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| 4.875% 2024 Senior Secured Notes |
395
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(14) |
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| 7.625% 2021 AK Senior Notes |
34
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—
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| 7.500% 2023 AK Senior Notes |
13
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—
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| 6.375% 2025 Senior Notes |
64
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(7) |
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| 1.500% 2025 Convertible Senior Notes |
2
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|
—
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| 6.375% 2025 AK Senior Notes |
29
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(3) |
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| 5.750% 2025 Senior Notes |
396
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(17) |
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| IRBs due 2024 |
26
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—
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| Total |
$ |
1,306
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$ |
(88) |
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The following is a summary of the debt extinguished and the respective impact on extinguishment:
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(In Millions) |
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Year Ended
December 31, 2020 |
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Debt Extinguished |
|
Gain (Loss) on Extinguishment |
| 7.625% 2021 AK Senior Notes |
$ |
373 |
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$ |
— |
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| 7.500% 2023 AK Senior Notes |
367 |
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|
3 |
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| 4.875% 2024 Senior Secured Notes |
6 |
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|
1 |
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| 6.375% 2025 Senior Notes |
168 |
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|
21 |
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| 1.500% 2025 Convertible Senior Notes |
20 |
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|
1 |
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| 5.750% 2025 Senior Notes |
77 |
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|
16 |
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| 7.000% 2027 Senior Notes |
262 |
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|
27 |
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| 5.875% 2027 Senior Notes |
195 |
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|
49 |
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| 6.250% 2040 Senior Notes |
36 |
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13 |
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| 6.375% 2025 AK Senior Notes |
9 |
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(1) |
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| Total |
$ |
1,513 |
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$ |
130 |
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The following is a summary of the debt extinguished and the respective impact on extinguishment:
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(In Millions) |
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Year Ended
December 31, 2019 |
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Debt Extinguished |
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(Loss) on Extinguishment |
| 4.875% 2021 Senior Notes |
$ |
124 |
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$ |
(5) |
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| 5.750% 2025 Senior Notes |
600 |
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|
(13) |
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| Total |
$ |
724 |
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$ |
(18) |
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| Summary of Debt Instrument Maturities |
The following represents a summary of our debt instrument maturities based on the principal amounts outstanding at December 31, 2021:
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(In Millions) |
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Maturities of Debt |
| 2022 |
$ |
— |
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| 2023 |
— |
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| 2024 |
36 |
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| 2025 |
2,510 |
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| 2026 |
845 |
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| Thereafter |
1,978 |
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| Total maturities of debt |
$ |
5,369 |
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