Sociedad Minera Cerro Verde gets $1.8 billion loan for mine expansion

By Toni Weeks

San Luis Obispo, Calif., March 11 - Sociedad Minera Cerro Verde SAA entered into a five-year $1.8 billion senior unsecured term loan credit agreement on Tuesday with Citibank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The facility, which matures in March 2019, bears interest at Libor plus 190 basis points, subject to Cerro Verde's leverage ratio.

Amounts are expected to be drawn over a two-year period to fund a portion of the company's $4.6 billion mining expansion project as well as for general corporate purposes.

Bank of Tokyo-Mitsubishi UFJ, Ltd., BNP Paribas, Citigroup Global Markets Inc. and HSBC Securities (USA) Inc. are the joint lead arrangers and joint bookrunners.

The subsidiary of Freeport-McMoRan Copper & Gold Inc. mines for copper and molybdenum and is based in Arequipa, Peru.

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