Cleveland-Cliffs Wraps Up Full Redemption of Notes Due 2020
Cleveland-Cliffs Inc. CLF declared that as of the close of business on Oct 5, it has redeemed the entirety of its outstanding 4.8% senior notes due October 2020 and 5.9% senior notes due March 2020.
The total principal amount outstanding of debt redeemed was roughly $211 million. Per the company, these redemptions lowered annualized interest expense by roughly $10 million and expanded the company’s maturity profile.
Shares of Cleveland-Cliffs have gained 45.9% in the past three months against the industry’s decline of roughly 8.2%.
Buoyed by strong demand for pellets, the company raised 2018 sales volume guidance to 21 million long tons from the previous projection of 20.5 million in second-quarter 2018. Notably, it expects to sell between 6 million and 6.5 million long tons in the third quarter, while the rest is expected to be sold in the fourth quarter.
Moreover, the company is focused on de-leveraging its balance sheet. The company’s long-term debt was down roughly 42.5% year over year to $2,297 million at the end of the second quarter. The company’s debt-cut actions are likely to reduce annualized interest expenses. Moreover, its cash and cash equivalents jumped more than two folds to $802.5 million at the end of second-quarter 2018.
Cleveland-Cliffs Inc. Price and Consensus
Cleveland-Cliffs Inc. Price and Consensus | Cleveland-Cliffs Inc. Quote
Zacks Rank & Other Stocks to Consider
Cleveland-Cliffs currently carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks worth considering in the basic materials space are KMG Chemicals, Inc. KMG, Celanese Corporation CE and Cabot Corporation CBT.
KMG Chemicals has an expected long-term earnings growth rate of 28.5% and sports a Zacks Rank #1 (Strong Buy). The company’s shares have rallied 23% over the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
Celanese has an expected long-term earnings growth rate of 10% and carries a Zacks Rank #1. The company’s shares have moved up 5% over the past six months.
Cabot has an expected long-term earnings growth rate of 11% and carries a Zacks Rank #2. The company’s shares have gained 16% over the past six months.
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