PERTH (miningweekly.com) – Gold miner Newcrest Mining has priced $1.15-billion worth of senior secured notes to institutional buyers in the US.
The miner on Friday said that $650-million of the notes will have a ten-year maturity rate, maturing in May 2030, with a fixed rate coupon of 3.25% a year, while a further $500-million will have a 30-year maturity, maturing in May 2050, with a fixed coupon rate of 4.2%.
The miner told shareholders that the proceeds will be used to repurchase existing near-term corporate bond maturities.
“I am pleased with the very strong demand for Newcrest credit which has enabled us to secure long-term debt at coupons much lower than on our existing corporate bonds. This has allowed us to restructure and extend our debt maturity profile to better match our long asset life,” said Newcrest MD and CEO Sandeep Biswas.
The company overnight started a cash tender offer for any and all of its outstanding 4.45% notes, due in 2021, worth about $750-million, and a cash tender offer for its outstanding 4.2% notes, due in 2022, for up to $400-million of the outstanding $750-million.