CORRECTED-UPDATE 3-Cliffs Natural to take $6 bln charge on coal, iron ore assets
(Corrects paragraph 3 to add dropped words "we believe")
* Charge to raise debt-to-capital ratio, breaching covenant
* Says working with bankers to amend the covenant
* Shares fall as much as 7.7 pct
By Anannya Pramanick
Oct 17 (Reuters) - Cliffs Natural Resources Inc said it would write down the value of its coal and iron ore assets by $6 billion due to weak prices, putting it in breach of debt covenants and sending its shares down as much as 6.8 percent.
Cliffs said the non-cash charge would increase its debt-to-capital ratio over the 45 percent threshold set by its credit facility, and it was working with bankers to amend the covenant.
"... We believe this will result in higher interest rate on revolver borrowings going forward," FBR Capital Markets analysts wrote in a note.
Cliffs said the third-quarter charge was related to iron ore for export and coal used in steel-making. Continued...