• On September 8, 2025, Cleveland-Cliffs Inc. issued US$850 million in 7.625% Senior Guaranteed Notes due 2034 through a private placement, aiming to redeem outstanding 2027 notes and repay borrowings under its credit facility.
• This refinancing move reduces near-term debt maturities but increases the company's average cost of capital and highlights continued reliance on debt markets to manage its capital structure.
• We'll now examine how Cleveland-Cliffs' sizable new debt issue and the ongoing US-UK steel tariff discussions could reshape its investment outlook.

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Cleveland-Cliffs Investment Narrative Recap

For anyone considering Cleveland-Cliffs as an investment, the case centers on belief in persistent U.S. steel tariff enforcement and a sustained automotive market recovery driving domestic demand. The company's latest US$850 million debt issuance addresses near-term refinancing needs, yet does little to materially change the most important short-term catalyst, trade policy clarity, or the biggest risk, which remains tariff exposure and elevated financial leverage.

Of recent company actions, the September 8, 2025, note issuance is most directly connected. This refinancing extends maturities into 2034 and repays borrowings, but at a higher average interest cost, which keeps Cleveland-Cliffs’ balance sheet sensitivity to interest rates and cash flow firmly in focus relative to upcoming policy negotiations and competitive pressures.

However, before underestimating the potential impact of shifting steel tariffs on Cliffs’ revenue stability, investors should know that...

Cleveland-Cliffs' narrative projects $22.5 billion in revenue and $590.0 million in earnings by 2028. This requires 6.8% yearly revenue growth and a $2.29 billion increase in earnings from the current -$1.7 billion.

Uncover how Cleveland-Cliffs' forecasts yield a $11.31 fair value, a 3% downside to its current price.

Exploring Other Perspectives

Ten different perspectives from the Simply Wall St Community place fair value for Cleveland-Cliffs stock anywhere between US$1.73 and US$56.79 per share. As regulatory policy dominates short-term risks, you can see how widely opinions on future performance can differ, take a closer look and explore several viewpoints.

Explore 10 other fair value estimates on Cleveland-Cliffs - why the stock might be worth less than half the current price!

Build Your Own Cleveland-Cliffs Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Cleveland-Cliffs research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Cleveland-Cliffs research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Cleveland-Cliffs' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.