Yamana Gold tenders for up to $551 million of six series of notes

By Rebecca Melvin

New York, July 5 – Yamana Gold Inc. launched cash tender offers for up to $551 million of six series of notes, according to a press release.

The following series are included in the offer, listed in order of their acceptance priority level:

• $84,068,768 4.36% senior notes due 2020 (series B) for a total consideration of $1,012.50 for each $1,000 principal amount;

• $192,178,212.31 4.76% senior notes due 2022 (series C) for a total consideration of $1,012.50 for each $1,000 principal amount;

• $135,693,052.48 4.91% senior notes due 2024 (series D) for a total consideration of $1,012.50 for each $1,000 principal amount;

• $261,054,091.58 4.78% senior notes due 2023 (series B);

• $500,000,0004.95% senior notes due 2024, and;

• $300,000,000 4.625% senior notes due 2027.

The first three series of notes are being purchased for a fixed price and the last three series of notes are being purchased at prices based on a fixed spread.

If $415 million or more of the private notes are tendered (the first four series), Yamana will not accept any tenders of the last two series of public notes. In addition, the principal amount of each series of public notes purchased will be determined in accordance with the acceptance priority level.

Holders who tender the last two series of notes prior to the early tender deadline of 5 p.m.ET on July 18 will be eligible to receive an early tender payment.

With regard to the fixed-spread notes, the applicable consideration payable will be an amount based on the yield to maturity of the U.S. Treasury reference securities as determined at 2 p.m. ET on Aug. 5.

The first four series of private notes tendered prior to 5 p.m. ET on Aug. 7, 2019 will be eligible to receive the applicable tender offer consideration.

The settlement date is Aug. 12.

Yamana has retained RBC Capital Markets, LLC and BofA Merrill Lynch to act as dealer managers for the tender offers. D.F. King & Co., Inc. has been retained to act as the public notes’ information agent for the tender offers (212 269 5550, banks and brokers or 866 521 4487, toll free or yamana@dfking.com). AST Trust Co. (Canada) has been retained to act as the private notes depositary for the tender offers in respect of the private notes (416 682 3860 or 800 387 0825).

Yamana Gold is a Toronto-based gold producer.

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