Yamana Gold sets pricing for fixed-spread notes covered by tender

By Wendy Van Sickle

Columbus, Ohio, Aug. 5 – Yamana Gold Inc. announced pricing for three series of notes covered by its cash tender offers for a total of six series of notes, according to a news release issued on Monday.

As announced on July 5, Yamana Gold launched offers to purchase six series of notes, three of which were to be priced based on a fixed spread.

The applicable considerations payable for the fixed-spread notes were based on the yield to maturity of the U.S. Treasury reference securities as determined at 2 p.m. ET on Aug. 5.

The total considerations for those fixed-spread notes, per $1,000 principal amount, were set as follow:

• For the $261,054,092 4.78% senior notes due 2023 (series B), $1,070.27, based on the 1.75% U.S. Treasury note due June 30, 2024 for a reference yield of 1.536% plus 130 basis points and $5.58 of accrued interest;

• For the $500 million 4.95% senior notes due 2024, $1,091.97, based on the 1.75% U.S. Treasury note due June 30, 2024 for a reference yield of 1.536% plus 130 bps and $3.71 of accrued interest, and;

• For the $300 million 4.625% senior notes due 2027, $1,072.63, based on the 2.375% U.S. Treasury note due May 15, 2029 for a reference yield of 1.733% plus 185 bps, plus $7.32 of accrued interest.

The 4.95% notes and 4.625% notes are public notes, while the 4.78% notes are private notes. The company tendered for four series of private notes, including the 4.78% notes, on July 5, saying that if $415 million or more of the private notes are tendered, it would not accept any tenders of public notes for purchase.

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.

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;

• The 4.78% senior notes due 2023 (series B);

• The 4.95% senior notes due 2024; and

• The 4.625% senior notes due 2027.

By the early deadline, 5 p.m. ET on July 18, the company had taken in tenders of $462.42 million of its public notes.

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.

Holders who tendered the public notes prior to the early tender deadline will be eligible to receive an early tender payment of $30, which is included in the total considerations.

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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