Cleveland-Cliffs Inc (NYSE: CLF) today announced that the trading
price condition for the conversion right of its 3.25 percent redeemable
cumulative convertible perpetual preferred stock is satisfied and, as a
result, the preferred stock may be surrendered for conversion at any
time during the fiscal fourth quarter ending Dec. 31, 2008. Cliffs said
it currently has only 205 convertible perpetual preferred shares
outstanding.
The trading price condition was satisfied because the closing share
price of Cleveland-Cliffs' common shares for at least 20 of the last 30
trading days of the fiscal 2008 third quarter exceeded 110 percent of
the then applicable conversion price of the preferred stock. The
satisfaction allows conversion of the preferred stock only during the
fiscal 2008 fourth quarter. Conversion may continue after the fiscal
2008 fourth quarter if certain conditions set forth in Cleveland-Cliffs'
amended articles of incorporation are satisfied.
The preferred stock was also convertible during each of the previous 15
fiscal quarters due to the satisfaction of the trading price condition
during the applicable periods of the relevant preceding fiscal quarters.
The conversion rate is currently 133.0646 common shares per share of
preferred stock. This equates to a conversion price of approximately
$7.52 per common share, subject to adjustment in certain circumstances
including payment of dividends on the common shares.
Beginning Jan. 20, 2009, Cliffs may redeem shares of the preferred stock
by paying cash, its common shares valued at a discount of 2.5 percent
from their market price or any combination thereof in an amount equal to
the liquidation preference, plus any accumulated and unpaid dividends to
the redemption date. Other conditions and terms can be found in the
related prospectus dated July 22, 2004.
To be added to Cleveland-Cliffs’ e-mail
distribution list, please click on the link below:
http://www.cpg-llc.com/clearsite/clf/emailoptin.html
News releases and other information on the Company are available on the
Internet at:
http://www.cleveland-cliffs.com
or
www.cleveland-cliffs.com/Investors/Pages/default.aspx?b=1041&1=1
ABOUT CLEVELAND-CLIFFS
Cleveland-Cliffs Inc, headquartered in Cleveland, Ohio, is an
international mining company, the largest producer of iron ore pellets
in North America and a major supplier of metallurgical coal to the
global steelmaking industry. The Company operates six iron ore mines in
Michigan, Minnesota and Eastern Canada, and three coking coal mines in
West Virginia and Alabama. Cliffs also owns 85% of Portman Limited, a
large iron ore mining company in Australia, serving the Asian iron ore
markets with direct-shipping fines and lump ore. In addition, the
Company has a 30% interest in the Amapá
Project, a Brazilian iron ore project, and a 45% economic interest in
the Sonoma Project, an Australian coking and thermal coal project.
Cleveland-Cliffs Inc
Steve Baisden, Director, Investor Relations and
Corporate
Communications, 216-694-5280
srbaisden@cleveland-cliffs.com
