By Reshmi Basu
New York, July 20 - Southern Peru Copper Corp. sold an upsized $800 million offering of senior notes (Ba1/BBB-/BB+) in a two-tranche deal, according to a market source.
The issue consisted of $200 million in 10-year notes and an upsized offering of $600 million in 30-year notes. The size of the 30-year notes increased from $400 million.
The 10-year notes priced at 99.475 with a 6 3/8% coupon to yield 6.447%, or 225 basis points over Treasuries. That tranche came in tighter than price guidance of 240 bps over Treasuries.
Meanwhile the 30-year notes priced at 99.116 with a 7½% coupon to yield 7.575%, or 315 bps over Treasuries. That portion priced at the tighter end of price guidance of the Treasuries plus 325 bps area.
Citigroup and UBS Investment Bank were the joint-lead managers for the Rule 144A/Regulation S with registration rights offering.
Proceeds will be used to repay existing debt, which could include debt of wholly owned subsidiary Minera Mexico SA de CV.
The issuer is an integrated producer of copper, which operates mining, smelting, and refining facilities in the southern part of Peru. It has headquarters in Phoenix.
| Issuer: | Southern Peru Copper Corp.
|
| Issue: | Two-tranche offering of senior notes
|
| Total amount: | $800 million
|
| Pricing date: | July 20
|
| Settlement date: | July 27
|
| Lead managers: | Citigroup, UBS Investment Bank
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BBB-
|
| Fitch: BB+
|
|
|
| 10-year notes
|
| Amount: | $200 million
|
| Issue: | Senior notes
|
| Maturity: | July 27, 2015
|
| Coupon: | 6 3/8%
|
| Issue price: | 99.475
|
| Yield: | 6.447%
|
| Spread: | 225 bps more than Treasuries
|
| Price guidance: | 240 bps more than Treasuries
|
|
|
| 30-year notes
|
| Amount: | $600 million
|
| Issue: | Senior notes
|
| Maturity: | July 27, 2035
|
| Coupon: | 7½%
|
| Issue price: | 99.116
|
| Yield: | 7.575%
|
| Spread: | 315 bps more than Treasuries
|
| Price guidance: | 325 bps more than Treasuries
|
|
|
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