Exerpts fro Cliffs NR today

Cliffs Natural Resources Inc. (NYSE: CLF) announced today that it has entered into an agreement to amend its existing $1.75 billion unsecured revolving credit facility with its syndicate of banking partners. The amendment agreement replaces the existing leverage covenant ratio with a Debt-to-Capitalization ratio for the life of the facility in order to provide the Company a more consistent source of liquidity

Cliffs further stated that it has undertaken proactive measures to manage its debt and liquidity profile in order to further strengthen its balance sheet as iron ore and met coal prices continue to be volatile. The Company’s management team continues to take the necessary steps to ensure the organization can operate efficiently and maintain consistent access to liquidity through an industry-wide cyclical downturn. The completion of the amendment is further evidence of management’s commitment to its balance sheet and liquidity management objectives.

Other changes contemplated in the amendment agreement include the establishment of a net leverage incurrence ratio related to dividend increases, share repurchases, investments and acquisitions as well as a tighter restriction on the Company’s ability to issue priority debt.

Seems clearer to me now that they were and possibly still are selling to meet covenants in the finacial agreeemnt they need. Lets hope its over or there is a cross.