Cliffs enters into $1.75 billion revolver at Libor plus 150 bps

By Aleesia Forni

Columbus, Ohio, Aug. 17 - Cliffs Natural Resources Inc. entered into a $1.75 billion amended and restated revolving credit facility, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

Pricing on the revolver ranges from Libor plus 75 basis points to 200 bps, with initial pricing set at 150 bps.

Commitment fees range from 12.5 bps to 30 bps.

Merrill Lynch, Pierce, Fenner & Smith Inc., J.P. Morgan Securities LLC, Citigroup Global Markets Inc., PNC Capital Markets Inc. and U.S. Bank NA are joint lead arrangers and joint book managers. Bank of America, NA is administrative agent, swing line lender and letter of credit issuer. JP Morgan Chase Bank, NA is the syndication agent and letter of credit issuer. Fifth Third Bank and RBS Citizens, NA are co-documentation agents.

This agreement amends and restates the existing $600 million facility, dated August 2007.

Cliffs also entered into an amendment to its term loan on Aug. 11.

The amended agreement modifies certain covenants including the sale of assets, indebtedness, the lien covenant and the financial ratio covenant.

According to the amended terms, interest will now range from Libor plus 87.5 bps to 187.5 bps, with an initial rate of 162.5 bps.

Cliffs is a Cleveland-based mining and national resources company.

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