Cleveland-Cliffs has begun an underwritten public offering of 75,000,000 common shares, each with a par value of $0.125. UBS Securities LLC is the underwriter and has a 30‑day option to purchase up to an additional 11,250,000 shares.
The offering is structured as a shelf registration that will become effective automatically. Proceeds will be used to repay borrowings under the company’s asset‑based credit facility, which totaled approximately $1,471 million as of October 24, 2025. Any remaining net proceeds will be applied to general corporate purposes.
The move follows a period of significant financial strain. In the third quarter of 2025, Cleveland-Cliffs reported a net loss of $470 million, compared with a net income of $9 million in the same quarter of 2024. Earnings per share were –$0.45, meeting forecasts but falling short of expectations. Revenue also missed analyst estimates.
The company’s debt‑to‑equity ratio stands at 1.47, while its current ratio is 2.04, indicating adequate short‑term liquidity. Cleveland-Cliffs has been actively reducing leverage, targeting a 2.5x leverage ratio, and has recently issued $275 million of senior unsecured notes due 2034 to further strengthen its balance sheet.
Segment analysis shows that the steelmaking division generated $4.6 billion in revenue in Q3 2025, with 30% of that coming from direct sales to the automotive market. Other segments include tubular, tooling and stamping, and European operations. Management emphasized that the equity raise is part of a broader strategy to improve financial flexibility and support ongoing debt reduction.
The preliminary prospectus supplement was filed with the SEC and is available on the SEC’s website, confirming the terms of the offering and the intended use of proceeds.
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