Yamana Gold sees early tenders for $462.42 million 2024, 2027 notes

By Marisa Wong

Los Angeles, July 19 – Yamana Gold Inc. said it received tenders for $462.42 million of its public notes as of 5 p.m. ET on July 18, the early tender deadline of its previously announced cash tender offers.

Specifically, holders had tendered $347,891,000 of Yamana’s 4.95% senior notes due 2024 and $114,529,000 of its 4.625% senior notes due 2027.

As announced on July 5, Yamana also launched offers to purchase four series of its other, private notes, which have priority over the public notes.

If $415 million or more of the private notes are tendered, the company will not accept any tenders of public notes for purchase.

In addition, the 4.95% notes due 2024 have priority in acceptance over the 4.625% notes due 2027.

The company said the $462.42 million of public notes tendered thus far is well in excess of the $415 million available to the noteholders and well positions it to achieve its goal of meaningfully retiring outstanding debt.

As previously reported, Yamana is tendering for the following series, 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 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 4.91% senior notes due 2024 (series D) for a total consideration of $1,012.50 for each $1,000 principal amount;

• $261,054,092 4.78% senior notes due 2023 (series B);

• $500 million 4.95% senior notes due 2024, and;

• $300 million 4.625% senior notes due 2027.

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

The applicable consideration payable for the fixed-spread notes 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.

Holders who tendered the public notes prior to the early tender deadline will be eligible to receive an early tender payment.

The tender offers expire at 5 p.m. ET on Aug. 7. The settlement date is Aug. 12.

Yamana has retained RBC Capital Markets, LLC and BofA Securities to act as dealer managers for the tender offers.

D.F. King & Co., Inc. (212 269-5550 for banks and brokers or 866 521-4487 or yamana@dfking.com) is the public notes’ information agent. AST Trust Co. (Canada) (416 682-3860 or 800 387-0825) is the depositary for the private notes.

Yamana Gold is a Toronto-based gold producer.

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