Pan American announces consent bid for Yamana’s 2027, 2031 notes

By Wendy Van Sickle

Columbus, Ohio, April 27 – Pan American Silver Corp. announced that wholly owned subsidiary Yamana Gold Inc. has begun soliciting consents from holders to some proposed amendments to its 4.625% senior notes due 2027 and its 2.63% senior notes due 2031.

The consent solicitations are being conducted in connection with the recently completed court-approved statutory plan of arrangement under the Canada Business Corporations Act under which Pan American acquired all of the outstanding common shares of Yamana. In connection with the arrangement, the common shares of Yamana were delisted from the New York Stock Exchange, the London Stock Exchange and Toronto Stock Exchange, and Pan American has fully and unconditionally guaranteed the notes.

Yamana is soliciting consents to amend the reporting covenant of the indenture to provide that, for as long as the notes are guaranteed by Pan American or any other entity that directly or indirectly controls Yamana, reports of Pan American or of the other controlling entity may be provided in lieu of reports of Yamana. The indenture currently requires Yamana to file with the trustee reports and information that it is required to file with the U.S. Securities and Exchange Commission or otherwise provide annual and quarterly financial information to the trustee.

Holders of record as of 5 p.m. ET on April 26 are eligible to deliver consents.

In order for a supplemental indenture to be executed effecting the amendments for a series, Yamana must receive consents from holders of a majority in principal amount outstanding of that series.

Regardless of the outcome of the consent bids, the notes will continue to be outstanding and bear interest as provided for in their indentures.

If the requisite consents are obtained, Yamana will make a cash payment of $1.50 per $1,000 principal amount of notes to holders who delivered and did not revoke valid consents.

D.F. King & Co., Inc. (212 269-5550, 800 714-3310 or yamana@dfking.com) is the Information and tabulation agent.

RBC Capital Markets, LLC (212 618-7843, 877 381-2099 or liability.management@rbccm.com) is the solicitation agent.

Yamana Gold is a Toronto-based gold producer. Pan American owns and operates silver and gold mines located in Mexico, Peru, Canada, Argentina and Bolivia.

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