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Cleveland-Cliffs Enters New $800 Million Credit Agreement

Monday, August 20th, 2007

Cleveland-Cliffs Inc announce it has entered into a new unsecured, $800 million credit agreement. The agreement includes a $200 million term loan and a $600 million revolver, with a $200 million accordion feature that can be used to expand the size of the facility. The five-year agreement replaces the Company’s previous $500 million revolving credit facility scheduled to expire in 2011. The new agreement, which was arranged by Bank of America and JPMorgan Securities Inc., provides more flexible terms and conditions, along with improved pricing compared with the previous facility. It also includes less restrictive financial covenants to accommodate the execution of Cliffs’ investment strategy. Bank of America serves as Administrative Agent and JPMorgan Chase Bank as Syndication Agent. In addition, 11 other banks are participating in the syndicate.
Cliffs has entered a new era of growth as an international mining entity and it is important we maintain the liquidity necessary to seize opportunities when they present themselves,” said Laurie Brlas, Cliffs’ senior vice president, chief financial officer and treasurer. “The new arrangement reflects our intention to optimize Cliffs’ capital structure, lower our cost of capital and generate more value for shareholders. We appreciate the support and confidence of our bank syndicate.”

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