ÐÇ¿Õ´«Ã½

Annual report pursuant to Section 13 and 15(d)

DEBT AND CREDIT FACILITIES (Tables)

v3.22.0.1
DEBT AND CREDIT FACILITIES (Tables)
12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract] Ìý
Schedule Of Long-Term Debt
The following represents a summary of our long-term debt:
(In Millions)
December 31, 2021
Debt Instrument
Issuer1
Annual Effective Interest Rate Total Principal Amount Unamortized Debt Issuance Costs Unamortized Premiums (Discounts) Total Debt
Senior Secured Notes:
9.875% 2025 Senior Secured Notes
Cliffs 10.57% $ 607Ìý $ (4) $ (13) $ 590Ìý
6.750% 2026 Senior Secured Notes
Cliffs 6.99% 845Ìý (16) (7) 822Ìý
Senior Unsecured Notes:
1.500% 2025 Convertible Senior Notes
Cliffs 6.26% 294Ìý (3) (39) 252Ìý
7.000% 2027 Senior Notes
Cliffs 9.24% 73Ìý —Ìý (7) 66Ìý
7.000% 2027 AK Senior Notes
AK Steel 9.24% 56Ìý —Ìý (5) 51Ìý
5.875% 2027 Senior Notes
Cliffs 6.49% 556Ìý (3) (15) 538Ìý
4.625% 2029 Senior Notes
Cliffs 4.63% 500Ìý (8) —Ìý 492Ìý
4.875% 2031 Senior Notes
Cliffs 4.88% 500Ìý (8) —Ìý 492Ìý
6.250% 2040 Senior Notes
Cliffs 6.34% 263Ìý (2) (3) 258Ìý
IRBs due 2024 to 2028 AK Steel Various 66Ìý —Ìý 2Ìý 68Ìý
ABL Facility3
Cliffs2
1.87% 4,500Ìý —Ìý —Ìý 1,609Ìý
Total long-term debt $ 5,238Ìý
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).
2 Refers to ÐÇ¿Õ´«Ã½ Inc. as borrower under our ABL Facility.
3 The total principal amount for the ABL Facility is stated at the maximum borrowing capacity.
(In Millions)
December 31, 2020
Debt Instrument
Issuer1
Annual Effective Interest Rate Total Principal Amount Unamortized
Debt Issuance Costs
Unamortized Premiums (Discounts) Total Debt
Senior Secured Notes:
4.875% 2024 Senior Secured Notes
Cliffs 5.00% $ 395Ìý $ (3) $ (1) $ 391Ìý
9.875% 2025 Senior Secured Notes
Cliffs 10.57% 955Ìý (8) (25) 922Ìý
6.750% 2026 Senior Secured Notes
Cliffs 6.99% 845Ìý (20) (9) 816Ìý
Senior Unsecured Notes:
7.625% 2021 AK Senior Notes
AK Steel 7.33% 34Ìý —Ìý —Ìý 34Ìý
7.500% 2023 AK Senior Notes
AK Steel 6.17% 13Ìý —Ìý —Ìý 13Ìý
6.375% 2025 Senior Notes
Cliffs 8.11% 64Ìý —Ìý (4) 60Ìý
6.375% 2025 AK Senior Notes
AK Steel 8.11% 29Ìý —Ìý (2) 27Ìý
1.500% 2025 Convertible Senior Notes
Cliffs 6.26% 296Ìý (4) (49) 243Ìý
5.750% 2025 Senior Notes
Cliffs 6.01% 396Ìý (3) (4) 389Ìý
7.000% 2027 Senior Notes
Cliffs 9.24% 73Ìý —Ìý (8) 65Ìý
7.000% 2027 AK Senior Notes
AK Steel 9.24% 56Ìý —Ìý (6) 50Ìý
5.875% 2027 Senior Notes
Cliffs 6.49% 556Ìý (4) (18) 534Ìý
6.250% 2040 Senior Notes
Cliffs 6.34% 263Ìý (2) (3) 258Ìý
IRBs due 2024 to 2028 AK Steel Various 92Ìý —Ìý 2Ìý 94Ìý
EDC Revolving Facility3
* 3.25% 40Ìý —Ìý —Ìý 18Ìý
ABL Facility3
Cliffs2
2.15% 3,500Ìý —Ìý —Ìý 1,510Ìý
Total debt 5,424Ìý
Less: current 34Ìý
Total long-term debt $ 5,390Ìý
*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).
2 Refers to ÐÇ¿Õ´«Ã½ Inc. as borrower under our ABL Facility.
3 The total principal amounts for the indicated credit facilities are stated at their respective maximum borrowing capacities.
Debt Instrument Redemption The following is a summary of redemption prices for our 4.625% 2029 Senior Notes:
Redemption Period
Redemption Price1
Restricted Amount
Prior to March 1, 2024 - using the proceeds of equity issuance 104.625Ìý % Up to 35% of original aggregate principal
Prior to March 1, 20242
100.000Ìý
Beginning March 1, 2024 102.313Ìý
Beginning March 1, 2025 101.156Ìý
Beginning on March 1, 2026 and thereafter 100.000Ìý
1 Plus accrued and unpaid interest, if any, up to, but excluding, the redemption date.
2 Plus a "make-whole" premium.
The following is a summary of redemption prices for our 4.875% 2031 Senior Notes:
Redemption Period
Redemption Price1
Restricted Amount
Prior to March 1, 2026 - using the proceeds of equity issuance 104.875Ìý % Up to 35% of original aggregate principal
Prior to March 1, 2026 2
100.000Ìý
Beginning March 1, 2026 102.438Ìý
Beginning March 1, 2027 101.625Ìý
Beginning March 1, 2028 100.813Ìý
Beginning on March 1, 2029 and thereafter 100.000Ìý
1 Plus accrued and unpaid interest, if any, up to, but excluding, the redemption date.
2 Plus a "make-whole" premium.
Summary of Borrowing Capacity Under the ABL Facility
The following represents a summary of our borrowing capacity under the ABL Facility:
(In Millions)
December 31,
2021
Available borrowing base on ABL Facility1
$ 4,500Ìý
Borrowings (1,609)
Letter of credit obligations2
(175)
Borrowing capacity available $ 2,716Ìý
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.
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.
Summary of Debt Extinguished
The following is a summary of the debt extinguished and the respective impact on extinguishment:
(In Millions)
Year Ended
December 31, 2021
Debt Extinguished (Loss) on Extinguishment
9.875% 2025 Senior Secured Notes $ 347Ìý $ (47)
4.875% 2024 Senior Secured Notes 395Ìý (14)
7.625% 2021 AK Senior Notes 34Ìý —Ìý
7.500% 2023 AK Senior Notes 13Ìý —Ìý
6.375% 2025 Senior Notes 64Ìý (7)
1.500% 2025 Convertible Senior Notes 2Ìý —Ìý
6.375% 2025 AK Senior Notes 29Ìý (3)
5.750% 2025 Senior Notes 396Ìý (17)
IRBs due 2024 26Ìý —Ìý
Total $ 1,306Ìý $ (88)
The following is a summary of the debt extinguished and the respective impact on extinguishment:
(In Millions)
Year Ended
December 31, 2020
Debt Extinguished ÌýGain (Loss) on Extinguishment
7.625% 2021 AK Senior Notes $ 373Ìý $ —Ìý
7.500% 2023 AK Senior Notes 367Ìý 3Ìý
4.875% 2024 Senior Secured Notes 6Ìý 1Ìý
6.375% 2025 Senior Notes 168Ìý 21Ìý
1.500% 2025 Convertible Senior Notes 20Ìý 1Ìý
5.750% 2025 Senior Notes 77Ìý 16Ìý
7.000% 2027 Senior Notes 262Ìý 27Ìý
5.875% 2027 Senior Notes 195Ìý 49Ìý
6.250% 2040 Senior Notes 36Ìý 13Ìý
6.375% 2025 AK Senior Notes 9Ìý (1)
Total $ 1,513Ìý $ 130Ìý
The following is a summary of the debt extinguished and the respective impact on extinguishment:
(In Millions)
Year Ended
December 31, 2019
Debt Extinguished (Loss) on Extinguishment
4.875% 2021 Senior Notes $ 124Ìý $ (5)
5.750% 2025 Senior Notes 600Ìý (13)
Total $ 724Ìý $ (18)
Summary of Debt Instrument Maturities
The following represents a summary of our debt instrument maturities based on the principal amounts outstanding at DecemberÌý31, 2021:
(In Millions)
Maturities of Debt
2022 $ —Ìý
2023 —Ìý
2024 36Ìý
2025 2,510Ìý
2026 845Ìý
Thereafter 1,978Ìý
Total maturities of debt $ 5,369Ìý