By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., April 4 – Nexa Resources SA priced $600 million of 6.75% senior notes due 2034 (BBB-/BBB-) guaranteed by Peru-based Nexa Resources Cajamarquilla SA and Brazil-based Nexa Recursos Minerais SA, according to a 6-K filing with the Securities and Exchange Commission and a market source.
The notes priced at a spread of Treasuries plus 240 basis points, after price talk in the Treasuries plus 280 bps area. Guidance was in the Treasuries plus 245 bps area, plus or minus 5 bps.
The company started fixed-income investor calls and gave a roadshow presentation on Monday for the Rule 144A and Regulation S offering.
BBVA, Citigroup, HSBC, JPMorgan, Mizuho, MUFG, Santander and Scotia led the sale.
As previously reported, Nexa intends to use the proceeds primarily to fund a cash tender offer to purchase a part of its $1.2 billion outstanding notes due 2027 and 2028 and the remainder, if any, for general corporate purposes, including liability management transactions.
Luxembourg-based Nexa is a zinc producer developing and operating mining and smelting assets in Latin America.
| Issuer: | Nexa Resources SA
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| Guarantors: | Nexa Resources Cajamarquilla SA and Nexa Recursos Minerais SA
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| Amount: | $600 million
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| Issue: | Senior notes
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| Maturity: | April 9, 2034
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| Bookrunners: | BBVA, Citigroup, HSBC, JPMorgan, Mizuho, MUFG, Santander and Scotia
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| Coupon: | 6.75%
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| Spread: | Treasuries 240 bps
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| Pricing date: | April 3
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| Settlement date: | April 9
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| Ratings: | S&P: BBB-
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| Fitch: BBB-
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| Distribution: | Rule 144A and Regulation S
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| Marketing: | Investor calls
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| Price talk: | Treasuries plus 280 bps area, guidance in Treasuries plus 245 bps area, plus or minus 5 bps
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