Mineros S.A. Begins Investor Engagement for Senior Notes Offering
In a significant move for its financial strategy, Mineros S.A. (TSX: MSA, MINEROS: CB) has announced the commencement of investor meetings concerning a proposed offering of senior notes valued at $400 million. This initiative, facilitated through its subsidiary Mineros Netherlands B.V., is contingent upon prevailing market conditions and is structured with a five-year maturity period. The senior notes are anticipated to be unsecured general obligations of Mineros Netherlands, backed by guarantees from Mineros and its affiliates, namely Hemco Mineros Nicaragua S.A. and Mineros Aluvial S.A.S. BIC.
The specific details surrounding the principal amount, interest rates, and other pertinent terms are expected to be finalized during the pricing process, reflecting the current financial landscape and market dynamics. The proceeds from this offering are earmarked for capital expenditures and general corporate needs, demonstrating Mineros‘ commitment to enhance its operational capabilities and financial flexibility.
Commitment Letter for Revolving Credit Facility
In conjunction with the notes offering, Mineros has entered into a commitment letter with leading financial institutions, including Citigroup Global Markets Inc., Banco Santander, S.A., and Royal Bank of Canada. This arrangement involves a senior revolving credit facility with a maximum principal amount of $100 million, of which $80 million has already been committed by the involved banks. The interest on this facility is projected to accrue at a rate of SOFR + 4.00% per annum, with a tenor of three years. However, this commitment is subject to standard conditions, including the finalization of definitive documentation.
The proposed borrower for this facility is expected to be Mineros Netherlands, with the parent company and its subsidiaries likely to act as guarantors. Details regarding whether the facility will be secured or unsecured are still to be determined.
Regulatory Compliance and Market Considerations
It’s important to note that this announcement is strictly for distribution within Canada and does not extend to the United States or other jurisdictions where such offers would be unlawful. The securities referenced in this announcement will only be made available to qualified institutional buyers in the U.S. and select non-U.S. investors in offshore transactions, in compliance with Regulation S. Notably, these securities have not been registered under the Securities Act, and the company does not intend to initiate a public offering in the U.S. or any other region where such actions are prohibited.
Mineros S.A., headquartered in Medellin, Colombia, has a robust portfolio of mining assets across Colombia and Nicaragua, alongside various development projects in the pipeline. With over five decades in the industry, Mineros has established a reputation for safety and sustainability in its operations, maximizing shareholder value while delivering consistent dividends.
For further inquiries regarding this announcement, investors can reach out to Ann Wilkinson, Vice President of Investor Relations, or Juan Obando, Director of Investor Relations.
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