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Cleveland-Cliffs (CLF) to Redeem Entire 5.75% Senior Notes
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Cleveland-Cliffs Inc. (CLF - Free Report) recently announced that it plans to fully redeem its $396 million principal amount of outstanding 5.75% Senior Notes due March 2025. The Notes are expected to be redeemed with available liquidity.
Per the terms and the Indenture governing the Notes, the company anticipates the total payment to holders of the Notes including the redemption premium to be roughly $407 million, plus accrued and unpaid interest to the redemption date. The payment is anticipated to be made on or before Jun 30, 2021.
Cleveland-Cliffs continues to generate consistent and strong cash flow and it expects this trend to continue for the foreseeable future. The company stated that it does not need to wait any longer to accelerate its deleveraging plan. The redemption of these notes using available liquidity, roughly four years ahead of their maturity date, marks the first step of the company’s mission to attain zero net debt. Going forward, deleveraging will remain its top priority, the company noted.
Shares of Cleveland-Cliffs have rallied 278.2% in a year compared with 52.4% rise of the industry.
Image Source: Zacks Investment Research
Cleveland-Cliffs, in its last earnings call, stated that it now expects full-year 2021 EBITDA of around $4 billion, up from the previous guidance of $3.5 billion. The company assumes that the U.S. hot-rolled coil price averages $1,100 per net ton for the last nine months of 2021.
For the second quarter of 2021, the company expects adjusted EBITDA of $1.2 billion.
Cleveland-Cliffs currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Dow Inc. (DOW - Free Report) , Nucor Corporation (NUE - Free Report) and Cabot Corporation (CBT - Free Report) .
Dow has a projected earnings growth rate of around 261.5% for the current year. The company’s shares have surged 77.2% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Nucor has an expected earnings growth rate of around 238% for the current year. The company’s shares have gained 141.5% in the past year. It currently sports a Zacks Rank #1.
Cabot has an expected earnings growth rate of roughly 126% for the current fiscal. The company’s shares have surged 74.2% in the past year. It currently flaunts a Zacks Rank #1.
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In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
Image: Bigstock
Cleveland-Cliffs (CLF) to Redeem Entire 5.75% Senior Notes
Cleveland-Cliffs Inc. (CLF - Free Report) recently announced that it plans to fully redeem its $396 million principal amount of outstanding 5.75% Senior Notes due March 2025. The Notes are expected to be redeemed with available liquidity.
Per the terms and the Indenture governing the Notes, the company anticipates the total payment to holders of the Notes including the redemption premium to be roughly $407 million, plus accrued and unpaid interest to the redemption date. The payment is anticipated to be made on or before Jun 30, 2021.
Cleveland-Cliffs continues to generate consistent and strong cash flow and it expects this trend to continue for the foreseeable future. The company stated that it does not need to wait any longer to accelerate its deleveraging plan. The redemption of these notes using available liquidity, roughly four years ahead of their maturity date, marks the first step of the company’s mission to attain zero net debt. Going forward, deleveraging will remain its top priority, the company noted.
Shares of Cleveland-Cliffs have rallied 278.2% in a year compared with 52.4% rise of the industry.
Cleveland-Cliffs, in its last earnings call, stated that it now expects full-year 2021 EBITDA of around $4 billion, up from the previous guidance of $3.5 billion. The company assumes that the U.S. hot-rolled coil price averages $1,100 per net ton for the last nine months of 2021.
For the second quarter of 2021, the company expects adjusted EBITDA of $1.2 billion.
ClevelandCliffs Inc. Price and Consensus
ClevelandCliffs Inc. price-consensus-chart | ClevelandCliffs Inc. Quote
Zacks Rank & Key Picks
Cleveland-Cliffs currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Dow Inc. (DOW - Free Report) , Nucor Corporation (NUE - Free Report) and Cabot Corporation (CBT - Free Report) .
Dow has a projected earnings growth rate of around 261.5% for the current year. The company’s shares have surged 77.2% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Nucor has an expected earnings growth rate of around 238% for the current year. The company’s shares have gained 141.5% in the past year. It currently sports a Zacks Rank #1.
Cabot has an expected earnings growth rate of roughly 126% for the current fiscal. The company’s shares have surged 74.2% in the past year. It currently flaunts a Zacks Rank #1.
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>