Cliffs amends credit facility to reduce size, permit stock repurchases

By Marisa Wong

Madison, Wis., Sept. 12 – Cliffs Natural Resources Inc. entered into a fourth amendment to its amended and restated multicurrency credit agreement dated Aug. 11, 2011 with Bank of America, NA as administrative agent to reduce the size of the existing facility on a pro-rata basis to $1.25 billion from $1.75 billion, according to an 8-K filing with the Securities and Exchange Commission.

The amendment, completed on Sept. 9, also modifies the credit agreement to permit a one-time exemption of up to $200 million in share repurchases, effective until Dec. 31, 2015.

In addition, the company added restrictions on the granting of pledges and guarantees and added an obligation to enter into a security agreement, on or before June 30, 2015, to grant security interests to secure obligations under the credit agreement on U.S. receivables and inventory, other than receivables and related property subject to existing receivable securitization or other facilities, a pledge of 65% of the stock of all material, wholly owned first-tier foreign subsidiaries and a pledge of all of the stock of all material U.S. subsidiaries.

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

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