Cliffs Natural amends loan, cuts size on pro-rata basis to $900 million

By Jennifer Chiou

New York, Jan. 28 – Cliffs Natural Resources Inc. entered into on Jan. 22 an amendment to its multicurrency credit agreement with Bank of America, NA as administrative agent, reducing the size of the existing facility on a pro-rata basis to $900 million from $1,125,000,000, according to an 8-K filing with the Securities and Exchange Commission.

The amendment further provides that the existing facility will reduce on a pro-rata basis to $750 million on May 31.

In addition, changes include, among other things, permitting certain subsidiaries and joint ventures related to the company's Canadian operations to enter into a restructuring, permitting costs and expenses incurred in connection with the Canadian restructuring in an amount not to exceed $75 million to be added back to the calculation of EBITDA and reducing the permitted amount of quarterly dividends on common shares of the company to no more than $0.01 per share in any fiscal quarter.

The amendment also grants a security interest in as-extracted collateral of the company and certain of its subsidiaries, the filing added.

The borrower is a Cleveland-based mining and natural resources company.

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