Cleveland-Cliffs successfully amended its $4.75 billion asset-based lending (ABL) facility as part of the financing for the pending acquisition of Stelco. Cliffs has completely replaced Goldman Sachs’ participation with increased commitments from Bank of America as administrative agent, Wells Fargo, J.P. Morgan, Fifth Third, Truist, Capital One, BMO, Huntington and U.S. Bank. Additionally, PNC, Flagstar, UBS, MUFG, Regions, Barclays, ING, RBC and First Citizens have also maintained their existing commitments to the ABL.
“In this latest ABL amendment, our capital request was three times over-subscribed, showing continued strong support from our banking partners,” Lourenco Goncalves, chairman, president and CEO of Cleveland-Cliffs, said. “We thank our entire bank group for their participation as we focus on partners who share our strategic priorities. As we position Cliffs for further growth in the United States and Canada, this amendment reinforces our strong financial position and ability to close the Stelco transaction quickly and efficiently in the fourth quarter of 2024.”
As of the finalization of the amendment, Cliffs had no net borrowings on its ABL facility. The amended ABL matures in 2028.
