Cliffs Natural Resources recapitalizes existing debt and successfully completes refinancing of existing credit facility

Client(s) Cliffs Natural Resources Inc.

Jones Day represented Cliffs Natural Resources Inc. and its subsidiaries in the recapitalization of certain of its existing debt, which included the issuance of $540 million aggregate principal amount of 8.250% Senior Secured First Lien Notes due 2020 in a Rule 144A and Regulation S offering and the issuance of approximately $544 million aggregate principal amount of 7.75% Senior Secured Second Lien Notes due 2020 that were issued in exchange offers for certain of Cliffs' outstanding notes.

Cliffs also refinanced its existing credit facility with a new senior secured asset-based revolving credit facility. Bank of America, N.A. serves as the administrative agent for the new credit facility, which provides for up to $550 million in borrowings, comprised of a $450 million U.S. tranche and a $100 million Australian tranche. Availability under both tranches is limited to an eligible U.S. borrowing base and Australian borrowing base, as applicable, determined by applying customary advance rates to eligible accounts receivable, inventory, and certain mobile equipment.