Stock Update (NYSE:CLF): Cliffs Natural Resources Inc Announces Extension of Exchange Offers for Senior Notes


Cliffs Natural Resources Inc (NYSE: CLF) ("Cliffs" or the "Company") today announced that it has extended its previously announced private offers (the "Exchange Offers") to exchange its newly issued 7.75% Senior Secured Notes due 2020 for certain outstanding senior unsecured notes of Cliffs (the "Existing Notes"), upon the terms and subject to the conditions set forth in the Company's offering memorandum dated February 26, 2015 (as amended and supplemented on March 5, 2015), in order to coincide with the closing of its new asset-based credit facility and its issuance of first lien notes.  Accordingly, the Exchange Offers will expire at 9:00 a.m.New York City time, on March 30, 2015. All other applicable terms and conditions of the Exchange Offers remain unchanged.  As of March 25, 2015, a total of approximately $674 million aggregate principal amount of Existing Notes had been tendered in the Exchange Offers. The Company expects the settlement of the Exchange Offers to occur on March 30, 2015.

Lourenco Goncalves, Cliffs' Chairman, President and Chief Executive Officer, stated, "We are pleased with the results of the Exchange Offers to date, which have allowed us to further reduce our net debt by approximately $129 million and counting. Based on these results, Cliffs already considers this transaction a success."

The Company has retained BofA Merrill Lynch, Jefferies, Deutsche Bank Securities and Credit Suisse to serve as Dealer Managers for the Exchange Offers. Questions regarding the Exchange Offers may be directed to BofA Merrill Lynch at (888) 292-0070 (toll-free) or (980) 388-3646 (collect). The offering memorandum and other documents relating to the Exchange Offers will only be distributed to holders who complete and return an eligibility form confirming that they are (i) "qualified institutional buyers" within the meaning of Rule 144A under the Securities Act or (ii) not "U.S. persons" and are outside of the United States within the meaning of Regulation S under the Securities Act (such persons, "Eligible Holders"). Holders who desire to obtain and complete an eligibility form should either visit the website for this purpose at http://www.gbsc-usa.com/eligibility/cliffs or call Global Bondholder Services Corporation, the Information Agent and Depositary for the Exchange Offers at (866) 470-4300 (toll-free) or (212) 430-3774 (collect for banks and brokers).

This press release does not constitute an offer to purchase securities or a solicitation of an offer to sell any securities or an offer to sell or the solicitation of an offer to purchase any securities, nor does it constitute an offer or solicitation in any jurisdiction in which such offer or solicitation is unlawful. (Original Source)

Shares of Cliffs closed yesterday at $5.07 . CLF has a 1-year high of $21.25 and a 1-year low of $4.12. The stock's 50-day moving average is $6.03 and it's 200-day moving average is $8.33.

On the ratings front, Cliffs has been the subject of a number of recent research reports. In a report issued on March 9, Wolfe Research analyst Gordon Johnson downgraded CLF to Sell, with a price target of $2, which represents a potential downside of 60.6% from where the stock is currently trading. Separately, on February 12, RBC's Fraser Phillips maintained a Hold rating on the stock and has a price target of $8.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gage the performance of their past recommendations, Gordon Johnson and Fraser Phillips have a total average return of 18.2% and -17.9% respectively. Johnson has a success rate of 67.9% and is ranked #172 out of 3547 analysts while Phillips has a success rate of 30.8% and is ranked #3439

In total, 6 research analysts have rated the stock with a Sell rating, 3 research analysts have assigned a Hold rating and . When considering if perhaps the stock is under or overvalued, the average price target is $5.07 which is 6.9% above where the stock closed yesterday.

Cliffs Natural Resources Inc is a mining and natural resources company. The Company is a supplier ofiron ore pellets to the North American steel industry from itsmines and pellet plants located in Michigan and Minnesota.

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