Newmont (NEM) Closes Offering Of $1B Senior Notes Due 2030

 | Mar 18, 2020 10:16PM ET

Newmont Corporation (NYSE:NEM) announced that it received aggregate net proceeds of around $985 million, after deducting underwriting discounts (before expenses), post closure of its registered public offering of $1 billion aggregate principal amount of 2.250% senior notes due 2030.
Per management, the company plans to use the low-cost capital raised to partly refinance outstanding notes slated to mature in 2022 and 2023, lowering its effective interest rate and extending its maturity profile.
The notes are treated as senior unsecured obligations of Newmont, and rank equally with its current and future unsecured senior debt. Further, the notes are senior to the future subordinated debt of the company. Notably, the notes are guaranteed by the company’s subsidiary, Newmont USA Limited, on a senior unsecured basis.
Newmont plans to use the net proceeds from the senior notes offering along with cash from its balance sheet (as required) for the repurchase of its outstanding 3.500% senior notes slated to mature in 2022 and outstanding 3.700% senior notes slated to mature in 2023.
It also involves the repurchase of Goldcorp Inc.’s (Newmont’s fully-owned subsidiary) outstanding 3.700% senior notes (slated to mature in 2023) for up to certain aggregate maximum principal tender amounts set out in the relevant purchase offer accepted for purchase. Moreover, it involves the payment of all unpaid and accrued interest thereon as well as any remaining part for working capital and other general corporate purposes.
BMO Capital Markets Corp., Goldman Sachs & Co (NYSE:GS). LLC and J.P. Morgan Securities LLC served as the joint book-running managers for the senior notes offering.
Newmont’s shares have gained 22.7% in the past year against the Zacks Investment Research
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Written By: Zacks Investment Research

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