By Paul A. Harris
Portland, Ore., Jan. 26 – Ero Copper Corp. priced a $400 million issue of eight-year senior notes (B1/B/B) at par to yield 6˝% on Wednesday, according to market sources.
The yield printed in the middle of yield talk in the 6˝% area. Initial guidance was in the low-to-mid 6% area.
Goldman Sachs was the left bookrunner. Joint bookrunner was Jefferies.
The notes will be guaranteed on a senior unsecured basis by the company’s 99.6%-owned Mineracao Caraiba SA subsidiary, according to a 6-K filing with the Securities and Exchange Commission.
The Vancouver, B.C.-based copper producer plans to use the proceeds to repay bank debt, for capital expenditures at the Boa Esperanca property and for general corporate purposes.
Ero Copper is focused on copper production growth from the MCSA Mining Complex located in Bahia, Brazil.
| Issuer: | Ero Copper Corp.
|
| Guarantor: | Mineracao Caraiba SA
|
| Amount: | $400 million
|
| Issue: | Senior notes
|
| Maturity: | Feb. 15, 2030
|
| Left bookrunner: | Goldman Sachs
|
| Joint bookrunner: | Jefferies
|
| Co-managers: | BMO and Canaccord Genuity
|
| Coupon: | 6˝%
|
| Price: | Par
|
| Yield: | 6˝%
|
| Spread: | 478 bps
|
| First call: | Feb. 15, 2025 at 103.25
|
| Trade date: | Jan. 26
|
| Settlement date: | Feb. 2
|
| Ratings: | Moody's: B1
|
| S&P: B
|
| Fitch: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6˝% area
|
| Marketing: | Roadshow
|
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