By Andrea Heisinger
New York, March 13 - Goldcorp Inc. priced $1.5 billion of notes (Baa2/BBB+/) in two tranches Wednesday, a source close to the trade said.
A $500 million tranche of 2.125% five-year notes was priced at 99.526 to yield 2.226% with a spread of Treasuries plus 135 basis points. Pricing was at the tight end of talk in the 140 bps area, plus or minus 5 bps.
There is a make-whole call at Treasuries plus 20 bps.
There was also $1 billion of 3.7% 10-year notes sold at 99.431 to yield 3.769% with a spread of 175 bps over Treasuries. The notes were priced at the tight end of talk in the 180 bps area, plus or minus 5 bps.
The 10-year notes have a make-whole call at Treasuries plus 25 bps to Dec. 15, 2022 and a par call after that date.
There is a change-of-control feature at 101%.
BofA Merrill Lynch and HSBC Securities (USA) Inc. were the active bookrunners.
Proceeds will be used to repay $862.5 million of convertible notes maturing in August 2014 and for capital expenditures, capital investment and working capital.
The global gold producer is based in Vancouver, B.C.
| Issuer: | Goldcorp Inc.
|
| Issue: | Notes
|
| Amount: | $1.5 billion
|
| Bookrunners: | BofA Merrill Lynch, HSBC Securities (USA) Inc. (active), Morgan Stanley & Co. LLC (passive)
|
| Senior co-managers: | BMO Capital Markets Corp., CIBC World Markets Corp., RBC Capital Markets LLC, Scotia Capital USA Inc., TD Securities (USA) LLC
|
| Co-managers: | Goldman Sachs & Co., Mitsubishi UFJ Securities (USA) Inc., RBS Securities Inc., SMBC Nikko Capital Markets Ltd.
|
| Change-of-control put: | 101%
|
| Trade date: | March 13
|
| Settlement date: | March 20
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB+
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | March 15, 2018
|
| Coupon: | 2.125%
|
| Price: | 99.526
|
| Yield: | 2.226%
|
| Spread: | Treasuries plus 135 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Price talk: | 140 bps area, plus or minus 5 bps
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | March 15, 2023
|
| Coupon: | 3.7%
|
| Price: | 99.431
|
| Yield: | 3.769%
|
| Spread: | Treasuries plus 175 bps
|
| Call: | Make-whole at Treasuries plus 25 bps to Dec. 15, 2022, par call after
|
| Price talk: | 180 bps area, plus or minus 5 bps
|
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