DEBT AND CREDIT FACILITIES (Tables)
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12 Months Ended |
Dec. 31, 2021 |
Debt Disclosure [Abstract] |
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) |
December 31, 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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$ |
(13) |
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$ |
590Ìý
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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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(7) |
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822Ìý
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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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(39) |
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252Ìý
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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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(3) |
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(15) |
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538Ìý
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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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66Ìý
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—Ìý
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2Ìý
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68Ìý
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ABL Facility3
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Cliffs2
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1.87% |
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4,500Ìý
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—Ìý
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—Ìý
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1,609Ìý
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Total long-term debt |
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$ |
5,238Ìý
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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 amount for the ABL Facility is stated at the maximum borrowing capacity.
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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 Secured 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 |
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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., were 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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Debt Instrument Redemption |
The following is a summary of redemption prices for our 4.625% 2029 Senior Notes:
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Redemption Period |
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Redemption Price1
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Restricted Amount |
Prior to March 1, 2024 - using the proceeds of equity issuance |
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104.625Ìý |
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% |
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Up to 35% of original aggregate principal |
Prior to March 1, 20242
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100.000Ìý |
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Beginning March 1, 2024 |
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102.313Ìý |
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Beginning March 1, 2025 |
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101.156Ìý |
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Beginning on March 1, 2026 and thereafter |
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100.000Ìý |
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1 Plus accrued and unpaid interest, if any, up to, but excluding, the redemption date.
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2 Plus a "make-whole" premium.
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The following is a summary of redemption prices for our 4.875% 2031 Senior Notes:
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Redemption Period |
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Redemption Price1
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Restricted Amount |
Prior to March 1, 2026 - using the proceeds of equity issuance |
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104.875Ìý |
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% |
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Up to 35% of original aggregate principal |
Prior to March 1, 2026 2
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100.000Ìý |
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Beginning March 1, 2026 |
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102.438Ìý |
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Beginning March 1, 2027 |
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101.625Ìý |
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Beginning March 1, 2028 |
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100.813Ìý |
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Beginning on March 1, 2029 and thereafter |
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100.000Ìý |
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1 Plus accrued and unpaid interest, if any, up to, but excluding, the redemption date.
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2 Plus a "make-whole" premium.
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Summary of Borrowing Capacity Under the ABL Facility |
The following represents a summary of our borrowing capacity under the ABL Facility:
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(In Millions) |
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December 31, 2021 |
Available borrowing base on ABL Facility1
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$ |
4,500Ìý
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Borrowings |
(1,609) |
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Letter of credit obligations2
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(175) |
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Borrowing capacity available |
$ |
2,716Ìý
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1 As of DecemberÌý31, 2021, the ABL Facility has a maximum available borrowing base of $4.5 billion. The 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 and environmental obligations.
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Summary of Debt Extinguished |
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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Year Ended December 31, 2021 |
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Debt Extinguished |
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(Loss) on Extinguishment |
9.875% 2025 Senior Secured Notes |
$ |
347Ìý
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$ |
(47) |
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4.875% 2024 Senior Secured Notes |
395Ìý
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(14) |
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7.625% 2021 AK Senior Notes |
34Ìý
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—Ìý
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7.500% 2023 AK Senior Notes |
13Ìý
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—Ìý
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6.375% 2025 Senior Notes |
64Ìý
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(7) |
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1.500% 2025 Convertible Senior Notes |
2Ìý
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—Ìý
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6.375% 2025 AK Senior Notes |
29Ìý
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(3) |
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5.750% 2025 Senior Notes |
396Ìý
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(17) |
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IRBs due 2024 |
26Ìý
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—Ìý
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Total |
$ |
1,306Ìý
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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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Year Ended December 31, 2020 |
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Debt Extinguished |
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ÌýGain (Loss) on Extinguishment |
7.625% 2021 AK Senior Notes |
$ |
373Ìý |
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$ |
—Ìý |
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7.500% 2023 AK Senior Notes |
367Ìý |
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3Ìý |
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4.875% 2024 Senior Secured Notes |
6Ìý |
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1Ìý |
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6.375% 2025 Senior Notes |
168Ìý |
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21Ìý |
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1.500% 2025 Convertible Senior Notes |
20Ìý |
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1Ìý |
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5.750% 2025 Senior Notes |
77Ìý |
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16Ìý |
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7.000% 2027 Senior Notes |
262Ìý |
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27Ìý |
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5.875% 2027 Senior Notes |
195Ìý |
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49Ìý |
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6.250% 2040 Senior Notes |
36Ìý |
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13Ìý |
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6.375% 2025 AK Senior Notes |
9Ìý |
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(1) |
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Total |
$ |
1,513Ìý |
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$ |
130Ìý |
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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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Year Ended December 31, 2019 |
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Debt Extinguished |
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(Loss) on Extinguishment |
4.875% 2021 Senior Notes |
$ |
124Ìý |
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$ |
(5) |
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5.750% 2025 Senior Notes |
600Ìý |
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(13) |
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Total |
$ |
724Ìý |
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$ |
(18) |
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Summary of Debt Instrument Maturities |
The following represents a summary of our debt instrument maturities based on the principal amounts outstanding at DecemberÌý31, 2021:
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(In Millions) |
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Maturities of Debt |
2022 |
$ |
—Ìý |
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2023 |
—Ìý |
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2024 |
36Ìý |
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2025 |
2,510Ìý |
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2026 |
845Ìý |
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Thereafter |
1,978Ìý |
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Total maturities of debt |
$ |
5,369Ìý |
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