Buenaventura issues inaugural 144A/Reg S offering of US$550 million senior unsecured notes

Photo: Courtesy

Photo: Courtesy

21:40 | Lima, Jul. 23.

Compañia de Minas Buenaventura S.A.A., Peru's largest publicly-traded precious metals mining company, on Friday announced the successful issuance of its senior unsecured notes (the "Notes") due 2026 in an aggregate amount of US$550 million.

According to its release, the Notes mature on July 23, 2026, and a coupon rate of 5.500% per annum. They were offered in a private placement to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and outside the United States to non-U.S. persons in accordance with Regulation S under the Securities Act.

The Notes are fully and unconditionally guaranteed jointly and severally by Compañía Minera Condesa S.A., Inversiones Colquijirca S.A., Procesadora Industrial Río Seco S.A. and Consorcio Energético Huancavelica S.A.

"Buenaventura intends to use the net proceeds from this offering to prepay the National Superintendence of Customs and Tax Administration's (Sunat) claim in full. The transaction will contribute to strengthening the Company's credit profile, extending maturities, reducing financing costs and freeing up lines of credit. The success of our bond issuance is an important reflection of investors' confidence in our Company, and in Peru's economic recovery and future stability," Buenaventura's CEO Leandro Garcia commented.

The company made clear that this press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor will there be any sale of these securities, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state or jurisdiction.

"The Notes have not been registered under the Securities Act, or any applicable state securities laws, and have been offered only to qualified institutional buyers pursuant to Rule 144A promulgated under the Securities Act and outside the United States to non-U.S. persons in accordance with Regulation S under the Securities Act. Unless so registered, the Notes may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and any applicable state securities laws," it said.

Company description

Compañía de Minas Buenaventura S.A.A. is Peru's largest, publicly traded precious and base metals Company and a major holder of mining rights in Peru.

The Company is engaged in the exploration, mining development, processing and trade of gold, silver and other base metals via wholly-owned mines and through its participation in joint venture projects. Buenaventura currently operates several mines in Peru (Orcopampa, Uchucchacua, Julcani, Tambomayo, El Brocal, La Zanja, and Coimolache).

The Company owns 43.65% of Minera Yanacocha S.R.L (a partnership with Newmont Mining Corporation & Sumitomo Corporation), an important precious metal producer and 19.58% of Sociedad Minera Cerro Verde, an important Peruvian copper producer (a partnership with Freeport-McMorRan Inc., Sumitomo Corporation & Sumitomo Metals).

Editor's note: Based on information provided by Buenaventura S.A.A.


Published: 7/23/2021
Most read