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DEBT AND CREDIT FACILITIES | 9 Months Ended
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Sep. 30, 2025
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, 2025 |  | December 31, 2024
Senior Unsecured Notes: |  |  |  |  |  |  |  |
7.000% 2027 Senior Notes 4 |  | Cliffs |  | 9.240% |  | $ | 73 |  |  | $ | 73 |
7.000% 2027 AK Senior Notes 4 |  | AK Steel |  | 9.240% |  | 56 |  |  | 56 |
5.875% 2027 Senior Notes 4 |  | Cliffs |  | 6.490% |  | 556 |  |  | 556 |
4.625% 2029 Senior Notes |  | Cliffs |  | 4.625% |  | 368 |  |  | 368 |
6.875% 2029 Senior Notes |  | Cliffs |  | 6.875% |  | 900 |  |  | 900 |
6.750% 2030 Senior Notes |  | Cliffs |  | 6.750% |  | 750 |  |  | 750 |
4.875% 2031 Senior Notes |  | Cliffs |  | 4.875% |  | 325 |  |  | 325 |
7.500% 2031 Senior Notes |  | Cliffs |  | 7.500% |  | 850 |  |  | — |
7.000% 2032 Senior Notes |  | Cliffs |  | 7.054% |  | 1,425 |  |  | 1,425 |
7.375% 2033 Senior Notes |  | Cliffs |  | 7.375% |  | 900 |  |  | 900 |
7.625% 2034 Senior Notes |  | Cliffs |  | 7.625% |  | 850 |  |  | — |
6.250% 2040 Senior Notes |  | Cliffs |  | 6.340% |  | 235 |  |  | 235 |
ABL Facility |  | Cliffs 2 |  | Variable 3 |  | 847 |  |  | 1,560 |
Total principal amount |  |  |  |  |  | 8,135 |  |  | 7,148 |
Unamortized discounts and issuance costs |  |  |  |  |  | (96) |  |  | (83) |
Total long-term debt |  |  |  |  |  | $ | 8,039 |  |  | $ | 7,065 |
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 5.87% as of September 30, 2025.
4 On September 3, 2025, we issued (a) a conditional notice to redeem, in full, all $73 million aggregate principal amount outstanding of the 7.000% 2027 Senior Notes, (b) a notice to redeem, in full, all $56 million aggregate principal amount outstanding of the 7.000% 2027 AK Senior Notes, and (c) a conditional notice to redeem, in full, all $556 million aggregate principal amount outstanding of the 5.875% 2027 Senior Notes, in each case on October 3, 2025 at a redemption price of 100.000% plus accrued and unpaid interest. Refer to NOTE 19 - SUBSEQUENT EVENTS for further details.
7.625% 2034 SENIOR NOTES OFFERING On September 8, 2025, we entered into an indenture among Cliffs, the guarantors party thereto and U.S. Bank Trust Company, National Association, as trustee, relating to the issuance of $850 million aggregate principal amount of our 7.625% 2034 Senior Notes, which were issued at par. The 7.625% 2034 Senior Notes were issued in a private placement transaction exempt from the registration requirements of the Securities Act. The 7.625% 2034 Senior Notes bear interest at a rate of 7.625% per annum, payable semi-annually in arrears on January 15 and July 15 of each year, commencing on January 15, 2026. The 7.625% 2034 Senior Notes mature on January 15, 2034. The 7.625% 2034 Senior Notes are unsecured senior obligations and rank equally in right of payment with all of our existing and future unsecured and unsubordinated indebtedness. The 7.625% 2034 Senior Notes are guaranteed on a senior unsecured basis by our material direct and indirect wholly owned domestic subsidiaries. The 7.625% 2034 Senior Notes are structurally subordinated to all existing and future indebtedness and other liabilities of our subsidiaries that do not guarantee the 7.625% 2034 Senior Notes. The 7.625% 2034 Senior Notes may be redeemed, in whole or in part, at any time at our option not less than 10 days nor more than 60 days after prior notice is sent to the holders of the 7.625% 2034 Senior Notes. The 7.625% 2034 Senior Notes are redeemable prior to January 15, 2029, at a redemption price equal to 100% of the principal amount thereof plus a "make-whole" premium set forth in the indenture. We may also redeem up to 35% of the aggregate principal amount of the 7.625% 2034 Senior Notes prior to January 15, 2029, at a redemption price equal to 107.625% of the principal amount thereof with the net cash proceeds of one or more equity offerings. The 7.625% 2034 Senior Notes are redeemable beginning on January 15, 2029, at a redemption price equal to 103.813% of the principal amount thereof, decreasing to 101.906% on January 15, 2030, and are redeemable at par beginning on January 15, 2031. In each case, we pay the applicable redemption or "make-whole" premiums plus accrued and unpaid interest, if any, to, but not including, the date of redemption. In addition, if a change in control triggering event, as defined in the indenture, occurs with respect to the 7.625% 2034 Senior Notes, we will be required to offer to repurchase the notes at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any, to, but not including, the date of repurchase. The terms of the 7.625% 2034 Senior Notes contain certain customary covenants; however, there are no financial covenants. On October 10, 2025, we issued an additional $275 million aggregate principal amount of our 7.625% 2034 Senior Notes at 102.750% of their principal amount. Refer to NOTE 19 - SUBSEQUENT EVENTS for further details. 7.500% 2031 SENIOR NOTES OFFERING On February 6, 2025, we entered into an indenture among Cliffs, the guarantors party thereto and U.S. Bank Trust Company, National Association, as trustee, relating to the issuance of $850 million aggregate principal amount of our 7.500% 2031 Senior Notes, which were issued at par. The 7.500% 2031 Senior Notes were issued in a private placement transaction exempt from the registration requirements of the Securities Act. The 7.500% 2031 Senior Notes bear interest at a rate of 7.500% per annum, payable semi-annually in arrears on March 15 and September 15 of each year, commencing on September 15, 2025. The 7.500% 2031 Senior Notes mature on September 15, 2031. The 7.500% 2031 Senior Notes are unsecured senior obligations and rank equally in right of payment with all of our existing and future unsecured and unsubordinated indebtedness. The 7.500% 2031 Senior Notes are guaranteed on a senior unsecured basis by our material direct and indirect wholly owned domestic subsidiaries. The 7.500% 2031 Senior Notes are structurally subordinated to all existing and future indebtedness and other liabilities of our subsidiaries that do not guarantee the 7.500% 2031 Senior Notes. The 7.500% 2031 Senior Notes may be redeemed, in whole or in part, at any time at our option not less than 10 days nor more than 60 days after prior notice is sent to the holders of the 7.500% 2031 Senior Notes. The 7.500% 2031 Senior Notes are redeemable prior to March 15, 2028, at a redemption price equal to 100% of the principal amount thereof plus a "make-whole" premium set forth in the indenture. We may also redeem up to 35% of the aggregate principal amount of the 7.500% 2031 Senior Notes prior to March 15, 2028, at a redemption price equal to 107.500% of the principal amount thereof with the net cash proceeds of one or more equity offerings. The 7.500% 2031 Senior Notes are redeemable beginning on March 15, 2028, at a redemption price equal to 103.750% of the principal amount thereof, decreasing to 101.875% on March 15, 2029, and are redeemable at par beginning on March 15, 2030. In each case, we pay the applicable redemption or "make-whole" premiums plus accrued and unpaid interest, if any, to, but not including, the date of redemption. In addition, if a change in control triggering event, as defined in the indenture, occurs with respect to the 7.500% 2031 Senior Notes, we will be required to offer to repurchase the notes at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any, to, but not including, the date of repurchase. The terms of the 7.500% 2031 Senior Notes contain certain customary covenants; however, there are no financial covenants. ABL FACILITY As of September 30, 2025, 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, 2025
Available borrowing base on ABL Facility 1 |  | $ | 3,972 |
Borrowings |  | (847) |
Letter of credit obligations 2 |  | (63) |
Borrowing capacity available |  | $ | 3,062 |
1 As of September 30, 2025, the ABL Facility has a maximum available borrowing base of $4.75 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, operating agreements, employee severance, environmental obligations, workers' compensation and insurance obligations.
DEBT MATURITIES The following represents a summary of our maturities of debt instruments based on the principal amounts outstanding at September 30, 2025 (in millions):
2025 |  | 2026 |  | 2027 |  | 2028 |  | 2029 |  | Thereafter |  | Total
$ | — |  |  | $ | — |  |  | $ | 685 |  |  | $ | 847 |  |  | $ | 1,268 |  |  | $ | 5,335 |  |  | $ | 8,135 |

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