By Angela McDaniels
Tacoma, Wash., Nov. 18 - Barrick Gold Corp. announced the purchase prices to be paid in its tender offer for 10 series of notes and the results of the offer so far.
As of 5 p.m. ET on Nov. 15, the early tender date, holders had tendered the following notes, which are listed in order of priority acceptance level:
• $39.7 million, or 39.7%, of Barrick Gold's $100 million 7.75% notes due 2015;
• $868,023,000, or 78.9%, of Barrick Gold's $1.1 billion 2.9% notes due 2016;
• $135,577,000, or 33.9%, of Barrick Mining Co.'s $400 million 5.75% notes due 2016;
• $393,995,000, or 60.6%, of Barrick Gold's $650 million 2.5% notes due 2018;
• $202,242,000, or 40.4%, of Barrick NA Finance LLC's $500 million 6.8% notes due 2018;
• $322,711,000, or 43.0%, of Barrick Gold's $750 million 6.95% notes due 2019;
• $127,177,000, or 31.8%, of Barrick (PD) Australia Finance Pty. Ltd.'s $400 million 4.95% notes due 2020;
• $326,031,000, or 24.2%, of Barrick NA Finance's $1.35 billion 4.4% notes due 2021;
• $418,307,000, or 33.5%, of Barrick Gold's $1.25 billion 3.85% notes due 2022; and
• $714,299,000, or 47.6%, of Barrick Gold's $1.5 billion 4.1% notes due 2023.
The total consideration payable per $1,000 principal amount of notes are listed in the table below.
The company will spend up to $1.5 billion, including principal, premium and accrued interest, to purchase notes in the offer, according to a company news release.
If there are enough remaining funds to purchase some, but not all, of the notes tendered of any series, the amount of notes of that series purchased will be subject to proration. However, if (1) a proration percentage greater than 95% would apply to the tendered notes of the series with the lowest acceptance priority level for which notes are accepted for purchase and (2) the additional aggregate purchase price needed to accept for purchase all tendered notes of that series would be less than $20 million, then the company will be required to accept for purchase all tendered notes of that series and, accordingly, proration will not apply.
Each total consideration includes an early tender premium of $30.00 per $1,000 principal amount of notes tendered by 5 p.m. ET on Nov. 15, the early tender date.
The total considerations were determined using a fixed spread over the yield based on the bid-side price of the applicable Treasury security at 2 p.m. ET on Nov. 18.
The company will also pay accrued interest up to but excluding the settlement date, which is expected to be Dec. 3.
The tender offer began Oct. 31 and will expire at midnight ET on Dec. 2.
The offer's financing condition has been met. The offer is not conditioned on the tender of a minimum principal amount of notes.
The dealer managers are RBC Capital Markets, LLC (877 381-2099 or 212 618-7822) and Barclays (800 438-3242 or 212 528-7581). Global Bondholder Services Corp. (866 470-3900 or 212 430-3774) is the information agent.
Barrick is a gold explorer based in Toronto.
Barrick Gold tender offer
| Security | Reference Treasury | Reference yield | Spread | Total consideration
|
| 7.75% notes due 2015 | 0.25% due Oct. 31, 2015 | 0.286% | 45 bps | $1,106.74
|
| 2.9% notes due 2016 | 0.625% due Oct. 15, 2016 | 0.538% | 45 bps | $1,046.94
|
| 5.75% notes due 2016 | 0.625% due Oct. 15, 2016 | 0.538% | 100 bps | $1,117.66
|
| 2.5% notes due 2018 | 1.25% due Oct. 31, 2018 | 1.317% | 90 bps | $1,011.82
|
| 6.8% notes due 2018 | 1.25% due Oct. 31, 2018 | 1.317% | 130 bps | $1,186.87
|
| 6.95% notes due 2019 | 1.25% due Oct. 31, 2018 | 1.317% | 170 bps | $1,192.18
|
| 4.95% notes due 2020 | 2.5% due Aug. 15, 2023 | 2.645% | 155 bps | $1,039.82
|
| 4.4% notes due 2021 | 2.5% due Aug. 15, 2023 | 2.645% | 195 bps | $987.19
|
| 3.85% notes due 2022 | 2.5% due Aug. 15, 2023 | 2.645% | 215 bps | $935.10
|
| 4.1% notes due 2023 | 2.5% due Aug. 15, 2023 | 2.645% | 230 bps | $936.34
|
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