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DEBT AND CREDIT FACILITIES (Notes)
 9 Months Ended
Sep. 30, 2020
Debt Disclosure [Abstract]  
DEBT AND CREDIT FACILITIES The following represents a summary of our long-term debt:
(In Millions)
September 30, 2020
Debt Instrument
Issuer1
Annual Effective
Interest Rate
Total Principal AmountDebt Issuance CostsUnamortized Premiums (Discounts)Total Debt
Senior Secured Notes:
4.875% 2024 Senior Secured NotesCliffs5.00%$394.5 $(3.7)$(1.5)$389.3 
9.875% 2025 Senior Secured NotesCliffs10.57%955.2 (8.1)(25.8)921.3 
6.75% 2026 Senior Secured NotesCliffs6.99%845.0 (21.4)(9.0)814.6 
Senior Unsecured Notes:
7.625% 2021 AK Senior NotesAK Steel7.33%33.5 — 0.1 33.6 
7.50% 2023 AK Senior NotesAK Steel6.17%12.8 — 0.5 13.3 
6.375% 2025 Senior NotesCliffs8.11%64.3 (0.2)(4.6)59.5 
6.375% 2025 AK Senior NotesAK Steel8.11%38.4 — (2.7)35.7 
1.50% 2025 Convertible Senior NotesCliffs6.26%296.3 (3.7)(53.0)239.6 
5.75% 2025 Senior NotesCliffs6.01%396.2 (2.6)(4.1)389.5 
7.00% 2027 Senior NotesCliffs9.24%88.0 (0.3)(9.6)78.1 
7.00% 2027 AK Senior NotesAK Steel9.24%56.3 — (6.0)50.3 
5.875% 2027 Senior NotesCliffs6.49%555.5 (4.3)(18.6)532.6 
6.25% 2040 Senior NotesCliffs6.34%262.7 (1.8)(2.8)258.1 
IRBs due 2024 to 2028AK SteelVarious92.0 — 2.3 94.3 
ABL Facility
Cliffs2
2.77%2,000.0 — — 400.0 
Total long-term debt$4,309.8 
1 Unless otherwise noted, references in this column to "Cliffs" are to Cleveland-Cliffs Inc., and references to "AK Steel" are to AK Steel Corporation.
2 Refers to Cleveland-Cliffs Inc. as borrower under our ABL Facility.
(In Millions)
December 31, 2019
Debt Instrument
Issuer1
Annual Effective
Interest Rate
Total Principal AmountDebt Issuance CostsUnamortized DiscountsTotal Debt
Senior Secured Notes:
4.875% 2024 Senior NotesCliffs5.00%$400.0 $(4.6)$(1.8)$393.6 
Senior Unsecured Notes:
1.50% 2025 Convertible Senior NotesCliffs6.26%316.3 (4.6)(65.0)246.7 
5.75% 2025 Senior NotesCliffs6.01%473.3 (3.6)(5.5)464.2 
5.875% 2027 Senior NotesCliffs6.49%750.0 (6.3)(27.3)716.4 
6.25% 2040 Senior NotesCliffs6.34%298.4 (2.2)(3.3)292.9 
Former ABL Facility
Cliffs2
N/A450.0 N/AN/A— 
Total long-term debt$2,113.8 
1 Unless otherwise noted, references in this column to "Cliffs" are to Cleveland-Cliffs Inc.
2 Refers to Cleveland-Cliffs Inc. and certain of its subsidiaries as borrowers under our Former ABL Facility.
Debt Extinguishments - 2020
    On April 24, 2020, we used the net proceeds from the offering of the additional 9.875% 2025 Senior Secured Notes to repurchase $736.4 million aggregate principal amount of our outstanding senior notes of various series, which resulted in debt reduction of $181.2 million. During the second quarter of 2020, we also repurchased an additional $11.2 million aggregate principal amount of our outstanding senior notes of various series with cash on hand. On June 1, 2020, we redeemed $7.3 million aggregate principal amount of our outstanding 2020 IRBs.
    On March 13, 2020, in connection with the Merger, we purchased $364.2 million aggregate principal amount of 7.625% 2021 AK Senior Notes and $310.7 million aggregate principal amount of 7.50% 2023 AK Senior Notes upon early settlement of tender offers made by Cliffs. The net proceeds from the offering of 6.75% 2026 Senior Secured Notes, along with a portion of the ABL Facility borrowings, were used to fund such purchases. As the 7.625% 2021 AK Senior Notes and 7.50% 2023 AK Senior Notes were recorded at fair value just prior to being purchased, there was no gain or loss on extinguishment. Additionally, in connection with the final settlement of the tender offers, on March 27, 2020, we purchased $8.5 million aggregate principal amount of the 7.625% 2021 AK Senior Notes and $56.5 million aggregate principal amount of the 7.50% 2023 AK Senior Notes with cash on hand.
    The following is a summary of the debt extinguished and the respective gain on extinguishment:
(In Millions)
Nine Months Ended
September 30, 2020
Debt InstrumentDebt ExtinguishedGain on Extinguishment
7.625% 2021 AK Senior Notes$372.7 $0.4 
7.50% 2023 AK Senior Notes367.2 2.8 
4.875% 2024 Senior Secured Notes5.5 0.5 
6.375% 2025 Senior Notes167.5 21.3 
1.50% 2025 Convertible Senior Notes20.0 1.3 
5.75% 2025 Senior Notes77.1 16.3 
7.00% 2027 Senior Notes247.3 28.4 
5.875% 2027 Senior Notes194.5 48.7 
6.25% 2040 Senior Notes35.7 12.9 
$1,487.5 $132.6 
Debt Extinguishments - 2019
    The following is a summary of the debt extinguished with cash and the respective loss on extinguishment:
(In Millions)
Nine Months Ended
September 30, 2019
Debt InstrumentDebt Extinguished(Loss) on Extinguishment
4.875% 2021 Senior Notes$124.0 $(5.3)
5.75% 2025 Senior Notes600.0 (12.9)
$724.0 $(18.2)
ABL Facility
    As of September 30, 2020, we were in compliance with the ABL Facility liquidity requirements and, therefore, the springing financial covenant requiring a minimum fixed charge coverage ratio of 1.0 to 1.0 was not applicable.
    The following represents a summary of our borrowing capacity under the ABL Facility:
(In Millions)
September 30,
2020
Available borrowing base on ABL Facility1
$1,715.2 
Borrowings(400.0)
Letter of credit obligations2
(192.2)
Borrowing capacity available$1,123.0 
1 As of September 30, 2020, the ABL Facility has a maximum borrowing base of $2.0 billion. The available borrowing base is determined by applying customary advance rates to eligible accounts receivable, inventory and certain mobile equipment.
2 We issued standby letters of credit with certain financial institutions in order to support business obligations including, but not limited to, workers' compensation, employee severance, IRBs and environmental obligations.
Debt Maturities
    The following represents a summary of our maturities of debt instruments based on the principal amounts outstanding at September 30, 2020:
(In Millions)
Maturities of Debt
2020 (remaining period of year)$— 
202133.5 
2022— 
202312.8 
2024456.5 
Thereafter3,987.9 
Total maturities of debt$4,490.7