Steel Mills

Cleveland-Cliffs Continues Process for AK Steel Acquisition

January 15, 2020

Cleveland-Cliffs has begun exchanging senior notes issued by AK Steel for notes issued by Cliffs in preparation for the acquisition of the Ohio-based steel company.

“For each $1,000 principal amount of Existing AK Steel Notes validly tendered on Feb. 12, 2020 (the ‘Expiration Date’) and not validly withdrawn, Eligible Holders of Existing AK Steel Notes will be eligible to receive the applicable exchange consideration,” stated the Cliffs announcement.

Cliffs is also seeking consent to adopt changes to the indentures governing the existing notes that will eliminate certain of the covenants, restrictive provisions and events of default.

The acquisition was announced in December with an anticipated closing date in the first half of this year. Cliffs and AK Steel currently expect to extend the expiration date for the notes exchange to coincide with completion of the merger.

The Cliffs/AK Steel combo is expected to provide both companies additional growth opportunities, including the potential restarting of the Ashland blast furnace.