Cliffs Natural Resources Inc. CLF has declared the early results of its earlier announced offer to purchase for cash (the "Tender Offer"), some of its outstanding 3.95% Senior Notes due 2018, subject to specific terms and conditions. The company also raised the total principal amount of the notes to be purchased from $100,000,000 to $123,694,000. The notes tendered in the offer cannot be withdrawn after the withdrawal deadline which was on Aug 13, 2015.
Cliffs initiated the Tender Offer on Jul 31, 2015 after meeting the conditions laid out in the Offer to Purchase and a related Letter of Transmittal. The Tender Offer will expire on Aug 27, 2015, unless extended or earlier terminated by the company.
Each holder of the notes who validly tendered and does not validly withdraw their notes at or prior to the early tender date will be eligible to get the total consideration for the notes, which is $550 per $1,000 principal amount of notes tendered. The holders of notes will also get accrued and unpaid interest up to, but not including, the settlement date. The settlement date will be following the Expiration Date and is presently expected to be on Aug 28, 2015, assuming all conditions to the Tender Offer have been fulfilled or waived.
Cliffs has retained Merrill Lynch, Pierce, Fenner & Smith Incorporated to serve as dealer manager for the Tender Offer.
Cliffs released its second-quarter 2015 results last month. The company had $276.2 million in cash and cash equivalents as of Jun 30, 2015, compared with $359.9 million as of Jun 30, 2014. Long-term debt stood at $2,887.4 million as of Jun 30, 2015, compared with $3,293 million as of Jun 30, 2014.
At the end of second-quarter 2015, Cliffs had net debt of $2.6 billion, compared with net debt of $3.1 billion at the end of second-quarter 2014. There was nothing drawn on the company's new asset-based lending facility at the end of the reported quarter. Reduction in net debt was a result of several actions including asset sales, exchange offers and open-market bond repurchases during the prior twelve months.
Cliffs’ capital expenditure reduced 70% year over year to $19 million in the second quarter. This includes capital spending related to North American Coal. Depreciation, depletion and amortization amounted to $31 million.
Cliffs currently carries a Zacks Rank #4 (Sell).
Some better-ranked mining stocks include Denison Mines Corp. DNN, OCI Resources LP OCIR and Zenyatta Ventures Ltd ZENYF. All of these hold a Zacks Rank #2 (Buy).
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Click to get this free report CLIFFS NATURAL (CLF): Free Stock Analysis Report DENISON MINES (DNN): Free Stock Analysis Report ZENYATTA VENTRS (ZENYF): Free Stock Analysis Report OCI RESOURCES (OCIR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research