Stock Update (NYSE:CLF): Cliffs Natural Resources Inc Announces Successful Conclusion of Tender Offer

Cliffs Natural Resources Inc (NYSE:CLF) announced the expiration of and final results for its offer to purchase for cash (the “Tender Offer”) up to $123,694,000 (as previously increased, the “Maximum Amount”) of its outstanding 3.95% Senior Notes due 2018 (the “Notes”).  The Tender Offer expired at midnight, New York City time, on August 27, 2015 (the “Expiration Date”).

According to information received from Global Bondholder Services Corporation, the Information Agent and Depositary for the Tender Offer, as of the Expiration Date, the total aggregate principal amount of the Notes validly tendered and not validly withdrawn was $124,839,000 (the “Tendered Amount”), which exceeded the Maximum Amount.  The Tendered Amount includes$123,694,000 aggregate principal amount of the Notes validly tendered as of 5:00 p.m., New York City time, on August 13, 2015(the “Early Tender Date”) and $1,145,000 aggregate principal amount of the Notes validly tendered after the Early Tender Date but prior to the Expiration Date.  Because the Maximum Amount was exceeded by no more than two percent of such amount, all Notes tendered in the Tender Offer will be accepted for purchase. In addition to the Total Consideration or Tender Offer Consideration (each as defined in the Offer to Purchase), holders of Notes accepted for purchase will also receive accrued and unpaid interest up to, but not including, the payment date for the Notes. The conditions to the Tender Offer have been satisfied; therefore, payment for the purchased Notes will be made today.

Lourenco Goncalves, Cliffs’ Chairman of the Board, President and Chief Executive Officer, said “The tender offer has allowed us to make significant progress toward reducing our nearest-dated maturity, while achieving a $125 million reduction in total debt, an$18 million reduction in interest expense until maturity, and a $56 million equity value creation through discount capture.” Mr. Goncalves added: “As we continue to demonstrate our commitment to actively manage our outstanding debt and take advantage of the opportunities offered by the capital markets, we would like to thank our investors for their demonstration of support to our U.S. centric strategy, which continues to differentiate Cliffs from those fully exposed to the volatility of China.” (Original Source)

Shares of Cliffs Natural Resources closed yesterday at $3.73. CLF has a 1-year high of $15.81 and a 1-year low of $2.28. The stock’s 50-day moving average is $3.04 and its 200-day moving average is $4.81.

On the ratings front, Cliffs Natural Resources has been the subject of a number of recent research reports. In a report issued on August 21, Wolfe Research analyst Gordon Johnson initiated coverage with a Sell rating on CLF and a price target of $2, which reflects a potential downside of -46.4% from last closing price. Separately, on August 3, RBC’s Fraser Phillips reiterated a Hold rating on the stock and has a price target of $3.50.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Gordon Johnson and Fraser Phillips have a total average return of 21.5% and -18.5% respectively. Johnson has a success rate of 73.1% and is ranked #65 out of 3741 analysts, while Phillips has a success rate of 30.8% and is ranked #3556.

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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