Cleveland-Cliffs Inc. (CLF - Free Report) declared that as of the close of business on Oct 5, it has redeemed the entirety of its outstanding 4.8% senior notes due October 2020 and 5.9% senior notes due March 2020.
The total principal amount outstanding of debt redeemed was roughly $211 million. Per the company, these redemptions lowered annualized interest expense by roughly $10 million and expanded the company’s maturity profile.
Shares of Cleveland-Cliffs have gained 45.9% in the past three months against the industry’s decline of roughly 8.2%.
Buoyed by strong demand for pellets, the company raised 2018 sales volume guidance to 21 million long tons from the previous projection of 20.5 million in second-quarter 2018. Notably, it expects to sell between 6 million and 6.5 million long tons in the third quarter, while the rest is expected to be sold in the fourth quarter.
Moreover, the company is focused on de-leveraging its balance sheet. The company’s long-term debt was down roughly 42.5% year over year to $2,297 million at the end of the second quarter. The company’s debt-cut actions are likely to reduce annualized interest expenses. Moreover, its cash and cash equivalents jumped more than two folds to $802.5 million at the end of second-quarter 2018.
Zacks Rank & Other Stocks to Consider
Cleveland-Cliffs currently carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks worth considering in the basic materials space are KMG Chemicals, Inc. (KMG - Free Report) , Celanese Corporation (CE - Free Report) and Cabot Corporation (CBT - Free Report) .
KMG Chemicals has an expected long-term earnings growth rate of 28.5% and sports a Zacks Rank #1 (Strong Buy). The company’s shares have rallied 23% over the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
Celanese has an expected long-term earnings growth rate of 10% and carries a Zacks Rank #1. The company’s shares have moved up 5% over the past six months.
Cabot has an expected long-term earnings growth rate of 11% and carries a Zacks Rank #2. The company’s shares have gained 16% over the past six months.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>