Cliffs Natural Makes Big Share Repurchase announcement

The Board of Directors of Cliffs Natural Resources Inc. (NYSE: CLF) today authorized the Company to buy back its outstanding common shares in the open market or in private negotiated transactions up to a maximum of $200 million dollars. The Company will be working with its bank group to ensure the buyback program is effectively implemented in a timely manner. Under the proposed terms of the buyback program, the Company is not obligated to make any purchases and the program may be suspended or discontinued at any time. The authorization is active until December 31, 2015.

Lourenco Goncalves, Cliffs Chairman and CEO, stated, "The implementation of our new strategy centered on the US iron ore business has successfully started. With that, we are very pleased that our newly reconstituted Board of Directors has agreed with our conviction that, at this point, the best use of our capital is to invest in our own business, our people and our assets by buying back Cliffs’ common stock." Mr. Goncalves concluded saying, "We believe that the stock buyback will be smoothly executed, and should benefit our valuable shareholders."

 

Commensurate with approving the stock buyback program, the Board has also authorized the Company to take all the necessary steps to remove the limitations and restrictions present in the Company’s current debt agreements which preclude Cliffs’ ability to execute the buyback program. Such steps include but are not limited to negotiating consents and amendments to the applicable debt instruments.

 

Separately, the Company also announces that, simultaneously with the signature of his severance agreement as an officer, Gary Halverson has resigned from his position as a Board member of Cliffs Natural Resources Inc.