CLEVELAND, June 30 /PRNewswire-FirstCall/ -- Cleveland-Cliffs Inc today announced that, due to the satisfaction of a condition to the conversion right of the holders of its 3.25% redeemable cumulative convertible perpetual preferred stock, the preferred stock may be surrendered for conversion at any time during the fiscal quarter ending September 30, 2006.
The condition was satisfied because the closing share price of Cleveland- Cliffs' common shares for at least 20 trading days of the last 30 trading days of the fiscal quarter ended June 30, 2006, exceeded 110% of the then applicable conversion price of the preferred stock. The satisfaction of this condition allows conversion of the preferred stock during the fiscal quarter ending September 30, 2006, only. Conversion may continue after such 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 past five fiscal quarters due to the satisfaction of this condition during the applicable periods.
Conditions were The preferred stock was
satisfied for the fiscal convertible during the
quarter ended: period ended:
March 31, 2005 June 30, 2005
June 30, 2005 September 30, 2005
September 30, 2005 December 31, 2005
December 31, 2005 March 31, 2006
March 31, 2006 June 30, 2006
The Company distributed common shares pursuant to a two-for-one common stock split on June 30, 2006, to shareholders of record as of the close of business on June 15, 2006. On a post-split basis, the conversion rate for the quarter ending September 30, 2006, is currently 65.5068 common shares per share of preferred stock. This equates to a conversion price of approximately $15.27 per common share, subject to adjustment in certain circumstances including payment of dividends on the common shares.
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Cleveland-Cliffs Inc, headquartered in Cleveland, Ohio, is the largest producer of iron ore pellets in North America and sells the majority of its pellets to integrated steel companies in the United States and Canada. Cleveland-Cliffs Inc operates a total of six iron ore mines located in Michigan, Minnesota and Eastern Canada. The Company is majority owner of Portman Limited, the third-largest iron ore mining company in Australia, serving the Asian iron ore markets with direct-shipping fines and lump ore.
News releases and other information on the Company are available on the Internet at: http://www.cleveland-cliffs.com/
