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v3.22.2.2

DEBT AND CREDIT FACILITIES | 9 Months Ended
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Sep. 30, 2022
Debt Disclosure [Abstract] |
DEBT AND CREDIT FACILITIES | NOTE 8 - DEBT AND CREDIT FACILITIES The following represents a summary of our long-term debt:
(In Millions)
Debt Instrument |  | Issuer 1 |  | Annual Effective Interest Rate |  | September 30, 2022 |  | December 31, 2021
Senior Secured Notes: |  |  |  |  |  |  |  |
9.875% 2025 Senior Secured Notes |  | Cliffs |  | 10.57% |  | $ | — |  |  | $ | 607 |
6.750% 2026 Senior Secured Notes |  | Cliffs |  | 6.99% |  | 829 |  |  | 845 |
Senior Unsecured Notes: |  |  |  |  |  |  |  |
1.500% 2025 Convertible Senior Notes |  | Cliffs |  | 6.26% |  | — |  |  | 294 |
7.000% 2027 Senior Notes |  | Cliffs |  | 9.24% |  | 73 |  |  | 73 |
7.000% 2027 AK Senior Notes |  | AK Steel |  | 9.24% |  | 56 |  |  | 56 |
5.875% 2027 Senior Notes |  | Cliffs |  | 6.49% |  | 556 |  |  | 556 |
4.625% 2029 Senior Notes |  | Cliffs |  | 4.63% |  | 370 |  |  | 500 |
4.875% 2031 Senior Notes |  | Cliffs |  | 4.88% |  | 326 |  |  | 500 |
6.250% 2040 Senior Notes |  | Cliffs |  | 6.34% |  | 235 |  |  | 263 |
IRBs due 2024 to 2028 |  | AK Steel |  | Various |  | — |  |  | 66 |
ABL Facility |  | Cliffs 2 |  | Variable 3 |  | 2,090 |  |  | 1,609 |
Total principal amount |  |  |  |  |  | 4,535 |  |  | 5,369 |
Unamortized discounts and issuance costs |  |  |  |  |  | (60) |  |  | (131) |
Total long-term debt |  |  |  |  |  | $ | 4,475 |  |  | $ | 5,238 |
1 Unless otherwise noted, references in this column and throughout this NOTE 8 - DEBT AND CREDIT FACILITIES to "Cliffs" are to Cleveland-Cliffs Inc., and references to "AK Steel" are to AK Steel Corporation (n/k/a Cleveland-Cliffs Steel Corporation).
2 Refers to Cleveland-Cliffs Inc. as borrower under our ABL Facility.
3 Our ABL Facility annual effective interest rate was 4.23% and 1.87%, respectively, as of September 30, 2022 and December 31, 2021.
Debt Extinguishments The following is a summary of the debt extinguished and the respective impact on extinguishment:
|  | (In Millions)
|  | Three Months Ended September 30, 2022 |  | Nine Months Ended September 30, 2022
Debt Instrument |  | Debt Extinguished |  | Gain on Extinguishment |  | Debt Extinguished |  | Gain (Loss) on Extinguishment
9.875% 2025 Senior Secured Notes |  | $ | — |  |  | $ | — |  |  | $ | 607 |  |  | $ | (85) |
6.750% 2026 Senior Notes |  | — |  |  | — |  |  | 16 |  |  | (1) |
1.500% 2025 Convertible Senior Notes |  | — |  |  | — |  |  | 294 |  |  | (16) |
4.625% 2029 Senior Notes |  | — |  |  | — |  |  | 130 |  |  | 8 |
4.875% 2031 Senior Notes |  | 13 |  |  | 1 |  |  | 174 |  |  | 13 |
6.250% 2040 Senior Notes |  | 28 |  |  | 3 |  |  | 28 |  |  | 3 |
IRBs due 2024 to 2028 |  | — |  |  | — |  |  | 66 |  |  | 2 |
Total |  | $ | 41 |  |  | $ | 4 |  |  | $ | 1,315 |  |  | $ | (76) |
ABL Facility As of September 30, 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)
|  | September 30, 2022
Available borrowing base on ABL Facility 1 |  | $ | 4,500 |
Borrowings |  | (2,090) |
Letter of credit obligations 2 |  | (166) |
Borrowing capacity available |  | $ | 2,244 |
1 As of September 30, 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 September 30, 2022:
|  | (In Millions)
|  | Maturities of Debt
2022 (remaining period of year) |  | $ | — |
2023 |  | — |
2024 |  | — |
2025 |  | 2,090 |
2026 |  | 829 |
Thereafter |  | 1,616 |
Total maturities of debt |  | $ | 4,535 |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI https://asc.fasb.org/topic&trid=2208564 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (h) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (g) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1E -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (i) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 + Details
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