Anglo American offers $1.3 billion in tenders for dollar, other notes

New York, Feb. 18 – Anglo American Capital plc announced tender offers in which it is proposing to pay up to $1.3 billion to buy back multiple series of its notes.

The offers are divided into two parts, one for dollar-denominated securities in which the company will pay up to $300 million and one for euro- and sterling-denominated securities in which the amount on offer is the equivalent of $1 billion.

Anglo American said the offers are part of its “ongoing pro-active capital management and are aimed at efficiently using its strong liquidity position to reduce gross debt and smooth the company’s debt maturity profile while improving cash flows by reducing interest expense.”

The offer for the dollar-denominated debt covers Anglo American’s $600 million of 2.625% senior securities due April 3, 2017 and $750 million of 2.625% senior securities due Sept. 27, 2017. Both issues are guaranteed by Anglo American plc. The purchase price will be $973.50 per $1,000 principal amount for the April notes and $939.00 per $1,000 for the September notes.

Both purchase prices include an early tender premium of $30.00 per $1,000 that will only be paid to holders who tender by 5 p.m. ET on March 2.

The dollar tenders end at 11:59 p.m. ET on March 16.

Anglo American will also pay accrued interest up to but excluding the settlement date, expected to be March 21.

BNP Paribas (888 210-4358, 212 841-3059, +44 20 7595 8668 or liability.management@bnpparibas.com) is the global coordinator and joint dealer manager. Commerzbank AG (800 233-9164, +49 69 136 59920 or liability.management@commerzbank.com) and Credit Agricole Securities (USA) Inc. (212 261-7802, 866 807-6030 or liability.management@ca-cib.com) are also joint dealer managers.

D.F. King & Co., Inc. (212 269-5550, 800 330-5897 or anglo@king-worldwide.com) is the information and tender agent.

The euro and sterling offer covers five series of notes, Anglo American’s €750 million of 4.375% notes due Dec. 2, 2016 at a purchase price of 100.65%, its €900 million of 1.75% notes due Nov. 20, 2017 at a purchase price of 96.65%, its €750 million of 1.75% notes due April 3, 2018 at a purchase price of 91.45%, its £400 million of 6.875% notes due May 1, 2018 at a purchase price of 96.15% and its €750 million of 2.5% notes due Sept. 18, 2018 at a purchase price of 90%.

Anglo American will also pay accrued interest.

The cap for the euro and sterling offer will be set at the foreign exchange equivalent of $1 billion, including derivative costs, but excluding the accrued interest.

The purchase price for the 4.375% notes will be capped at the equivalent of $250 million.

Apart from the cap, Anglo American will determine which notes it buys back at its discretion.

The euro and sterling offer ends at 11 a.m. ET on Feb. 25. Settlement is expected on March 1.

BNP Paribas (+44 20 7595 8668 or liability.management@bnpparibas.com) is the global coordinator and joint dealer manager. Commerzbank (+49 69 136 59920 or liability.management@commerzbank.com) and Credit Agricole CIB (+44 20 7214 5733 or liability.management@ca-cib.com) are also joint dealer managers.

Lucid Issuer Services Ltd. (+44 20 7704 0880 or angloamerican@lucid-is.com) is the tender agent.

The euro and sterling offer is being made under Regulation S.

Anglo American is a London-based mining company.

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