Quarterly report pursuant to Section 13 or 15(d)

DEBT AND CREDIT FACILITIES (Tables)

v3.22.2.2
DEBT AND CREDIT FACILITIES (Tables)
9 Months Ended
Sep. 30, 2022
Debt Disclosure [Abstract]  
Schedule of Long-Term Debt
The following represents a summary of our long-term debt:
(In Millions)
Debt Instrument
Issuer1
Annual Effective
Interest Rate
September 30,
2022
December 31,
2021
Senior Secured Notes:
9.875% 2025 Senior Secured Notes
Cliffs 10.57% $   $ 607 
6.750% 2026 Senior Secured Notes
Cliffs 6.99% 829  845 
Senior Unsecured Notes:
1.500% 2025 Convertible Senior Notes
Cliffs 6.26%   294 
7.000% 2027 Senior Notes
Cliffs 9.24% 73  73 
7.000% 2027 AK Senior Notes
AK Steel 9.24% 56  56 
5.875% 2027 Senior Notes
Cliffs 6.49% 556  556 
4.625% 2029 Senior Notes
Cliffs 4.63% 370  500 
4.875% 2031 Senior Notes
Cliffs 4.88% 326  500 
6.250% 2040 Senior Notes
Cliffs 6.34% 235  263 
IRBs due 2024 to 2028 AK Steel Various   66 
ABL Facility
Cliffs2
Variable3
2,090  1,609 
Total principal amount 4,535  5,369 
Unamortized discounts and issuance costs (60) (131)
Total long-term debt $ 4,475  $ 5,238 
1 Unless otherwise noted, references in this column and throughout this NOTE 8 - DEBT AND CREDIT FACILITIES to "Cliffs" are to Cleveland-Cliffs Inc., and references to "AK Steel" are to AK Steel Corporation (n/k/a Cleveland-Cliffs Steel Corporation).
2 Refers to Cleveland-Cliffs Inc. as borrower under our ABL Facility.
3 Our ABL Facility annual effective interest rate was 4.23% and 1.87%, respectively, as of September 30, 2022 and December 31, 2021.
Schedule of Extinguishment of Debt
The following is a summary of the debt extinguished and the respective impact on extinguishment:
(In Millions)
Three Months Ended
September 30, 2022
Nine Months Ended
September 30, 2022
Debt Instrument
Debt Extinguished
Gain on Extinguishment Debt Extinguished Gain (Loss) on Extinguishment
9.875% 2025 Senior Secured Notes
$   $   $ 607  $ (85)
6.750% 2026 Senior Notes
    16  (1)
1.500% 2025 Convertible Senior Notes
    294  (16)
4.625% 2029 Senior Notes
    130  8 
4.875% 2031 Senior Notes
13  1  174  13 
6.250% 2040 Senior Notes
28  3  28  3 
IRBs due 2024 to 2028     66  2 
Total $ 41  $ 4  $ 1,315  $ (76)
Schedule of Line of Credit Facilities
The following represents a summary of our borrowing capacity under the ABL Facility:
(In Millions)
September 30,
2022
Available borrowing base on ABL Facility1
$ 4,500 
Borrowings (2,090)
Letter of credit obligations2
(166)
Borrowing capacity available $ 2,244 
1 As of September 30, 2022, the ABL Facility has a maximum available borrowing base of $4.5 billion. The borrowing base is determined by applying customary advance rates to eligible accounts receivable, inventory and certain mobile equipment.
2 We issued standby letters of credit with certain financial institutions in order to support business obligations, including, but not limited to, workers' compensation, employee severance, insurance, operating agreements and environmental obligations.
Schedule of Maturities of Long-term Debt
The following represents a summary of our maturities of debt instruments based on the principal amounts outstanding at September 30, 2022:
(In Millions)
Maturities of Debt
2022 (remaining period of year) $ — 
2023 — 
2024 — 
2025 2,090 
2026 829 
Thereafter 1,616 
Total maturities of debt $ 4,535