Yamana Gold gives final results of tender for six series of notes

By Sarah Lizee

Olympia, Wash., Aug. 8 – Yamana Gold Inc. announced the final results of its cash tender offers for a total of six series of notes, according to a news release issued on Thursday.

The tender offers expired at 5 p.m. ET on Aug. 7.

The tender covers four series of private notes, including the 4.36% senior notes due 2020 (series B), 4.76% senior notes due 2022 (series C), 4.91% senior notes due 2024 (series D) and 4.78% senior notes due 2023 (series B), and two series of public notes, including the 4.95% senior notes due 2024 and 4.625% senior notes due 2027.

As of the deadline, a total of $49,584,123.47 of private notes were validly tendered and a total amount of $462,811,000 of public notes were validly tendered.

Specifically, the following notes were tendered and accepted for purchase, listed in order of their acceptance priority level:

• $27,893,098 of its $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;

• $1,504,187 of its $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;

• None of its $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;

• $20,186,838 of the 4.78% senior notes due 2023 (series B) for a total consideration of $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;

• $348,282,000 of the $500 million 4.95% senior notes due 2024 for a total consideration of $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;

• $17,125,000 of the $300 million 4.625% senior notes due 2027 for a total consideration of $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.

Of the amount of notes tendered, all were accepted, except for the 4.625% notes due 2027, which were subject to proration.

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 company had previously said that if $415 million or more of the private notes were tendered, it would not accept any tenders of public notes for purchase.

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 settlement date is Aug. 12.

Yamana has retained RBC Capital Markets, LLC and BofA Securities Inc. 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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