PERTH (miningweekly.com) – Diversified miner South32 has priced $700-million on senior unsecured notes, due in 2032, to fund its acquisition of a 45% interest in the Sierra Gorda copper mine, in Chile.
The company said on Friday that the notes would be offered to qualified institutional buyers inside of the US, and to certain buyers outside of the US in offshore transactions.
South32 intends to use the cash proceeds from the offering, along with cash on hand, for the repayment in full of amounts drawn down under its acquisition bridge facility to partially fund the acquisition of a 45% interest in Sierra Gorda.
The notes will pay interest on April 14 and October 14 each year, commencing in October 2022, at a rate of 4.35% a year. The notes will be guaranteed by South32 and certain other wholly-owned subsidiaries of South32.
“We are pleased that our strong financial position and disciplined approach to capital management has been recognised by investors with the successful execution of our inaugural US dollar bond issue,” said CFO Katie Tovich.
“Completion will enable our repayment of the $800-million short-term acquisition bridge facility that was drawn in February to support our acquisition of a 45% interest in the Sierra Gorda copper mine.”