Cleveland-Cliffs Launches $964M Share Offering Amid Debt Repayment Plans

Cleveland-Cliffs, a major North American steel producer, has recently launched a public offering of 75 million shares priced at approximately $12.85 each to raise $964 million, with underwriters having an option to purchase an additional 11.25 million shares. The company plans to use the proceeds primarily to repay debt under its asset-based credit facility and for general corporate purposes, addressing its significant debt burden of about $8 billion. Despite a nearly 50% year-to-date stock gain, shares fell roughly 7.7-9% after the offering announcement. Cleveland-Cliffs has benefited from President Donald Trump's steel tariffs, which have reduced foreign competition, and the company is exploring new ventures such as extracting rare earth minerals from its mines. The offering is underwritten by UBS Securities and is expected to close shortly, reflecting ongoing financial challenges amid a volatile steel industry. The company remains vertically integrated, serving markets including the automotive sector across the United States and Canada.