Cliffs Natural Resources gets $1.484 billion unsecured term loan

By Sara Rosenberg

New York, Oct. 30 - Cliffs Natural Resources Inc. closed on a new $1.484 billion five-year unsecured term loan, according to an 8-K filed with the Securities and Exchange Commission Thursday.

JPMorgan acted as the lead arranger, bookrunner and administrative agent on the deal that was completed on Oct. 24, with Bank of America, RBS, Citigroup, the Bank of Nova Scotia and Commonwealth Bank of Australia as co-arrangers.

Pricing on the loan can range from Libor plus 175 basis points to 325 bps, based on corporate ratings.

Proceeds will be used to finance the acquisition of Alpha Natural Resources Inc.

In addition, on Oct. 24, the company amended its multi-currency credit facility with Bank of America as the administrative agent, revising pricing and increasing the letter-of-credit commitment to $150 million.

Under the amendment, pricing on the multi-currency facility, like the new term loan, can range from Libor plus 175 bps to 325 bps, based on corporate ratings.

The effectiveness of the amendment is conditioned upon the closing and funding in full of the new term loan.

Cliffs is a Cleveland-based producer of iron ore pellets and supplier of metallurgical coal to the steelmaking industry.

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