Cliffs Natural Resources Inc. CLF announced that it has extended the date of its offer to exchange its recently issued 7.75% senior secured notes due 2020 for certain outstanding senior unsecured notes of the company.

The proposed offering is subject to the conditions mentioned in the company’s memorandum dated Feb 26, 2015. This extension of date of the offering was done so as to concur with the company’s issue of first lien notes and the closing of its asset-based credit facility. The offering will expire on Mar 30, 2015 at 9 a.m. ET. According to the authority at Cliffs, the extension of the offering will enable the company to reduce its net debt by nearly $129 million.

All the other conditions of the offering will remain unaffected. As of Mar 25, 2015, around $674 million aggregate principal amount of existing notes had been part of the offering. The settlement of the offering is expected on Mar 30, 2015.

Bank of America Merrill Lynch, Jefferies, Deutsche Bank Securities and Credit Suisse will continue to remain as dealer managers of the offering. The notes will be offered only to confirmed qualified institutional buyers under rule 144A Act and to buyers outside the U.S., in conformity with Regulation S under the Securities Act.

Cliffs anticipates continued economic growth in the U.S. to support domestic steel production and demand for steelmaking raw materials in 2015. The company is expected to gain from its pellet supply contracts with its U.S. iron ore customers that will help it to mitigate the impact of fluctuation in seaborne iron ore pricing.

Cliffs is also focusing on cost management amid a weak pricing environment, reflected by the reduction in its selling, general and administrative (SG&A) expenses in 2014. The company plans to further reduce SG&A expenses in 2015.

Cliffs currently carries a Zacks Rank #3 (Hold).

Better-ranked companies in the basic materials sector include Rubicon Minerals Corp. RBY, Asanko Gold Inc. AKG and Newmont Mining Corp. NEM. While Rubicon Minerals sports a Zacks Rank #1 (Strong Buy), both Asanko Gold and Newmont Mining carry a Zacks Rank #2 (Buy).