DEBT AND CREDIT FACILITIES (Tables)
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9 Months Ended |
Sep. 30, 2021 |
Sep. 30, 2020 |
| Debt Disclosure [Abstract] |
Ìý
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Ìý
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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) |
| September 30, 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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$ |
607Ìý
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$ |
(4) |
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$ |
(14) |
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$ |
589Ìý
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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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845Ìý
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(16) |
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(8) |
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821Ìý
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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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294Ìý
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(3) |
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(42) |
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249Ìý
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7.000% 2027 Senior Notes |
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Cliffs |
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9.24% |
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73Ìý
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—Ìý
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(7) |
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66Ìý
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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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56Ìý
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—Ìý
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(5) |
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51Ìý
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5.875% 2027 Senior Notes |
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Cliffs |
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6.49% |
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556Ìý
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(4) |
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(16) |
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536Ìý
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4.625% 2029 Senior Notes |
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Cliffs |
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4.63% |
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500Ìý
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(8) |
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—Ìý
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492Ìý
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4.875% 2031 Senior Notes |
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Cliffs |
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4.88% |
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500Ìý
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(8) |
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—Ìý
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492Ìý
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6.250% 2040 Senior Notes |
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Cliffs |
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6.34% |
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263Ìý
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(2) |
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(3) |
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258Ìý
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| IRBs due 2024 to 2028 |
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AK Steel |
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Various |
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92Ìý
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—Ìý
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2Ìý
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94Ìý
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EDC Revolving Facilities3
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* |
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Various |
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80Ìý
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—Ìý
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—Ìý
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55Ìý
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ABL Facility3
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Cliffs2
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2.23% |
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3,500Ìý
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—Ìý
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—Ìý
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1,673Ìý
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| Total debt |
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5,376Ìý
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| Less: current debt |
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26Ìý
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| Total long-term debt |
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$ |
5,350Ìý
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* Our subsidiaries, Fleetwood Metal Industries Inc. and The Electromac Group Inc., are the borrowers under the EDC Revolving Facilities. |
1 Unless otherwise noted, references in this column and throughout this NOTE 8 - DEBT AND CREDIT FACILITIES to "Cliffs" are to ÐÇ¿Õ´«Ã½ Inc., and references to "AK Steel" are to AK Steel Corporation (n/k/a ÐÇ¿Õ´«Ã½ Steel Corporation).
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2 Refers to ÐÇ¿Õ´«Ã½ 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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| (In Millions) |
| December 31, 2020 |
| 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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4.875% 2024 Senior Notes |
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Cliffs |
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5.00% |
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$ |
395Ìý |
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$ |
(3) |
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$ |
(1) |
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$ |
391Ìý |
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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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955Ìý |
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(8) |
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(25) |
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922Ìý |
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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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845Ìý |
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(20) |
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(9) |
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816Ìý |
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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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34Ìý |
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—Ìý |
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—Ìý |
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34Ìý |
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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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13Ìý |
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—Ìý |
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—Ìý |
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13Ìý |
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6.375% 2025 Senior Notes |
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Cliffs |
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8.11% |
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64Ìý |
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—Ìý |
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(4) |
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60Ìý |
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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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29Ìý |
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—Ìý |
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(2) |
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27Ìý |
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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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296Ìý |
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(4) |
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(49) |
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243Ìý |
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5.750% 2025 Senior Notes |
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Cliffs |
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6.01% |
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396Ìý |
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(3) |
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(4) |
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389Ìý |
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7.000% 2027 Senior Notes |
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Cliffs |
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9.24% |
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73Ìý |
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—Ìý |
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(8) |
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65Ìý |
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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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56Ìý |
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—Ìý |
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(6) |
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50Ìý |
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5.875% 2027 Senior Notes |
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Cliffs |
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6.49% |
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556Ìý |
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(4) |
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(18) |
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534Ìý |
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6.250% 2040 Senior Notes |
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Cliffs |
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6.34% |
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263Ìý |
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(2) |
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(3) |
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258Ìý |
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| IRBs due 2024 to 2028 |
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AK Steel |
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Various |
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92Ìý |
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—Ìý |
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2Ìý |
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94Ìý |
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EDC Revolving Facility3
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* |
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3.25% |
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40Ìý |
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—Ìý |
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—Ìý |
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18Ìý |
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ABL Facility3
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Cliffs2
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2.15% |
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3,500Ìý |
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—Ìý |
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—Ìý |
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1,510Ìý |
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| Total debt |
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5,424Ìý |
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| Less: current debt |
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34Ìý |
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| Total long-term debt |
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$ |
5,390Ìý |
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* Our subsidiaries, Fleetwood Metal Industries Inc. and The Electromac Group Inc., are 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 ÐÇ¿Õ´«Ã½ Inc., and references to "AK Steel" are to AK Steel Corporation (n/k/a ÐÇ¿Õ´«Ã½ Steel Corporation).
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2 Refers to ÐÇ¿Õ´«Ã½ 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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Ìý
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| Schedule of Extinguishment of Debt |
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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Three Months Ended
September 30, 2021 |
|
Nine Months Ended
September 30, 2021 |
| Debt Instrument |
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Debt Extinguished |
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(Loss) on Extinguishment |
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Debt Extinguished |
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(Loss) on Extinguishment |
9.875% 2025 Senior Secured Notes |
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$ |
—Ìý
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$ |
—Ìý
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$ |
347Ìý
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$ |
(47) |
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4.875% 2024 Senior Secured Notes |
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—Ìý
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—Ìý
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395Ìý
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(14) |
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7.625% 2021 AK Senior Notes |
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—Ìý
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—Ìý
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34Ìý
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—Ìý
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7.500% 2023 AK Senior Notes |
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—Ìý
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—Ìý
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13Ìý
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—Ìý
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6.375% 2025 Senior Notes |
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—Ìý
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—Ìý
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64Ìý
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(7) |
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1.500% 2025 Convertible Senior Notes |
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2Ìý
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—Ìý
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2Ìý
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—Ìý
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6.375% 2025 AK Senior Notes |
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—Ìý
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—Ìý
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29Ìý
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(3) |
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5.750% 2025 Senior Notes |
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—Ìý
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—Ìý
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396Ìý
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(17) |
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$ |
2Ìý
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$ |
—Ìý
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$ |
1,280Ìý
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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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Nine Months Ended
September 30, 2020 |
| Debt Instrument |
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Debt Extinguished |
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Gain on Extinguishment |
7.625% 2021 AK Senior Notes |
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$ |
373Ìý |
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$ |
—Ìý |
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7.500% 2023 AK Senior Notes |
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367Ìý |
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3Ìý |
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4.875% 2024 Senior Secured Notes |
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6Ìý |
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1Ìý |
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6.375% 2025 Senior Notes |
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168Ìý |
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21Ìý |
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1.500% 2025 Convertible Senior Notes |
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20Ìý |
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1Ìý |
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5.750% 2025 Senior Notes |
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77Ìý |
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16Ìý |
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7.000% 2027 Senior Notes |
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247Ìý |
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29Ìý |
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5.875% 2027 Senior Notes |
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194Ìý |
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49Ìý |
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6.250% 2040 Senior Notes |
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36Ìý |
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13Ìý |
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$ |
1,488Ìý |
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$ |
133Ìý |
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| Schedule of Line of Credit Facilities |
The following represents a summary of our borrowing capacity under the ABL Facility:
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(In Millions) |
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September 30,
2021 |
Available borrowing base on ABL Facility1
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$ |
3,500Ìý
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| Borrowings |
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(1,673) |
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Letter of credit obligations2
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(236) |
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| Borrowing capacity available |
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$ |
1,591Ìý
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1 As of SeptemberÌý30, 2021, the ABL Facility has a maximum borrowing base of $3.5 billion. The available borrowing base is determined by applying customary advance rates to eligible accounts receivable, inventory and certain mobile equipment.
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2 We issued standby letters of credit with certain financial institutions in order to support business obligations including, but not limited to, workers' compensation, employee severance, insurance, operating agreements, IRBs and environmental obligations.
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Ìý
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| Schedule of Maturities of Long-term Debt |
The following represents a summary of our maturities of debt instruments based on the principal amounts outstanding at SeptemberÌý30, 2021:
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(In Millions) |
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Maturities of Debt |
| 2021 (remaining period of year) |
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$ |
26Ìý |
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| 2022 |
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—Ìý |
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| 2023 |
|
55Ìý |
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| 2024 |
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36Ìý |
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| 2025 |
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2,574Ìý |
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| Thereafter |
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2,823Ìý |
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| Total maturities of debt |
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$ |
5,514Ìý |
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Ìý
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