ÐÇ¿Õ´«Ã½

Quarterly report pursuant to Section 13 or 15(d)

DEBT AND CREDIT FACILITIES

v3.22.2
DEBT AND CREDIT FACILITIES
6 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract] Ìý
DEBT AND CREDIT FACILITIES
NOTE 8 - DEBT AND CREDIT FACILITIES
The following represents a summary of our long-term debt:
(In Millions)
Debt Instrument
Issuer1
Annual Effective
Interest Rate
June 30,
2022
December 31,
2021
Senior Secured Notes:
9.875% 2025 Senior Secured Notes
Cliffs 10.57% $ —Ìý $ 607Ìý
6.750% 2026 Senior Secured Notes
Cliffs 6.99% 829Ìý 845Ìý
Senior Unsecured Notes:
1.500% 2025 Convertible Senior Notes
Cliffs 6.26% —Ìý 294Ìý
7.000% 2027 Senior Notes
Cliffs 9.24% 73Ìý 73Ìý
7.000% 2027 AK Senior Notes
AK Steel 9.24% 56Ìý 56Ìý
5.875% 2027 Senior Notes
Cliffs 6.49% 556Ìý 556Ìý
4.625% 2029 Senior Notes
Cliffs 4.63% 370Ìý 500Ìý
4.875% 2031 Senior Notes
Cliffs 4.88% 339Ìý 500Ìý
6.250% 2040 Senior Notes
Cliffs 6.34% 263Ìý 263Ìý
IRBs due 2024 to 2028 AK Steel Various —Ìý 66Ìý
ABL Facility
Cliffs2
Variable3
2,245Ìý 1,609Ìý
Total principal amount 4,731Ìý 5,369Ìý
Unamortized discounts and issuance costs (63) (131)
Total long-term debt $ 4,668Ìý $ 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 Our ABL Facility annual effective interest rate was 2.75% and 1.87%, respectively, as of JuneÌý30, 2022 and DecemberÌý31, 2021.
Debt Extinguishments
The following is a summary of the debt extinguished and the respective impact on extinguishment:
(In Millions)
Three Months Ended
June 30, 2022
Six Months Ended
June 30, 2022
Debt Instrument
Debt Extinguished
Gain (Loss) on Extinguishment Debt Extinguished Gain (Loss) on Extinguishment
9.875% 2025 Senior Secured Notes
$ 607Ìý $ (85) $ 607Ìý $ (85)
6.750% 2026 Senior Notes
16Ìý (1) 16Ìý (1)
1.500% 2025 Convertible Senior Notes
—Ìý —Ìý 294Ìý (16)
4.625% 2029 Senior Notes
130Ìý 8Ìý 130Ìý 8Ìý
4.875% 2031 Senior Notes
161Ìý 12Ìý 161Ìý 12Ìý
IRBs due 2024 to 2028 —Ìý —Ìý 66Ìý 2Ìý
Total $ 914Ìý $ (66) $ 1,274Ìý $ (80)
ABL Facility
As of JuneÌý30, 2022, we were in compliance with the ABL Facility liquidity requirements and, therefore, the springing financial covenant requiring a minimum fixed charge coverage ratio of 1.0 to 1.0 was not applicable.
The following represents a summary of our borrowing capacity under the ABL Facility:
(In Millions)
June 30,
2022
Available borrowing base on ABL Facility1
$ 4,500Ìý
Borrowings (2,245)
Letter of credit obligations2
(178)
Borrowing capacity available $ 2,077Ìý
1 As of JuneÌý30, 2022, 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.
Debt Maturities
The following represents a summary of our maturities of debt instruments based on the principal amounts outstanding at JuneÌý30, 2022:
(In Millions)
Maturities of Debt
2022 (remaining period of year) $ —Ìý
2023 —Ìý
2024 —Ìý
2025 2,245Ìý
2026 829Ìý
Thereafter 1,657Ìý
Total maturities of debt $ 4,731Ìý