| DEBT AND CREDIT FACILITIES |
NOTE 8 - DEBT AND CREDIT FACILITIES
The following represents a summary of our long-term debt:
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| (In Millions) |
| Debt Instrument |
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Issuer1
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Annual Effective
Interest Rate
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September 30,
2022 |
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December 31,
2021 |
| 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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$ |
—Ìý
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$ |
607Ìý |
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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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829Ìý
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845Ìý |
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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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—Ìý
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294Ìý |
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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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73Ìý |
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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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56Ìý |
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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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556Ìý |
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4.625% 2029 Senior Notes |
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Cliffs |
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4.63% |
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370Ìý
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500Ìý |
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4.875% 2031 Senior Notes |
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Cliffs |
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4.88% |
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326Ìý
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500Ìý |
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6.250% 2040 Senior Notes |
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Cliffs |
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6.34% |
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235Ìý
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263Ìý |
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| IRBs due 2024 to 2028 |
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AK Steel |
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Various |
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—Ìý
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66Ìý |
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| ABL Facility |
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Cliffs2
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Variable3
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2,090Ìý
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1,609Ìý |
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| Total principal amount |
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4,535Ìý
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5,369Ìý |
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| Unamortized discounts and issuance costs |
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(60) |
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(131) |
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| Total long-term debt |
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$ |
4,475Ìý
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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 Our ABL Facility annual effective interest rate was 4.23% and 1.87%, respectively, as of SeptemberÌý30, 2022 and DecemberÌý31, 2021.
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Debt Extinguishments
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, 2022 |
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Nine Months Ended
September 30, 2022 |
| Debt Instrument |
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Debt Extinguished |
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Gain on Extinguishment |
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Debt Extinguished |
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Gain (Loss) on Extinguishment |
9.875% 2025 Senior Secured Notes |
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$ |
—Ìý
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$ |
—Ìý
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$ |
607Ìý
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$ |
(85) |
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6.750% 2026 Senior Notes |
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—Ìý
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—Ìý
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16Ìý
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(1) |
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1.500% 2025 Convertible Senior Notes |
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—Ìý
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—Ìý
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294Ìý
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(16) |
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4.625% 2029 Senior Notes |
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—Ìý
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—Ìý
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130Ìý
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8Ìý
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4.875% 2031 Senior Notes |
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13Ìý
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1Ìý
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174Ìý
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13Ìý
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6.250% 2040 Senior Notes |
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28Ìý
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3Ìý
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28Ìý
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3Ìý
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| IRBs due 2024 to 2028 |
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—Ìý
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—Ìý
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66Ìý
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2Ìý
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| Total |
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$ |
41Ìý
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$ |
4Ìý
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$ |
1,315Ìý
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$ |
(76) |
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ABL Facility
As of SeptemberÌý30, 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:
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(In Millions) |
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September 30,
2022 |
Available borrowing base on ABL Facility1
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$ |
4,500Ìý
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| Borrowings |
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(2,090) |
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Letter of credit obligations2
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(166) |
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| Borrowing capacity available |
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$ |
2,244Ìý
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1 As of SeptemberÌý30, 2022, the ABL Facility has a maximum available borrowing base of $4.5 billion. The borrowing base is determined by applying customary advance rates to eligible accounts receivable, inventory and certain mobile equipment.
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2 We issued standby letters of credit with certain financial institutions in order to support business obligations, including, but not limited to, workers' compensation, employee severance, insurance, operating agreements and environmental obligations.
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Debt Maturities
The following represents a summary of our maturities of debt instruments based on the principal amounts outstanding at SeptemberÌý30, 2022:
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(In Millions) |
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Maturities of Debt |
| 2022 (remaining period of year) |
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$ |
—Ìý |
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| 2023 |
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—Ìý |
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| 2024 |
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—Ìý |
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| 2025 |
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2,090Ìý |
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| 2026 |
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829Ìý |
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| Thereafter |
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1,616Ìý |
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| Total maturities of debt |
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$ |
4,535Ìý |
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