Barrick begins tender offer for $1.15 billion of seven series of notes

By Marisa Wong

Morgantown, W.Va., Dec. 1 – Barrick Gold Corp. said it has begun a cash tender offer to purchase seven series of outstanding notes.

Barrick is offering to purchase up to $1.15 billion of the following notes, listed in order of acceptance priority level:

• Barrick’s $127,559,000 of outstanding 2.5% notes due 2018;

• Barrick’s $814,894,000 of outstanding 3.85% notes due 2022;

• Barrick’s $1.5 billion of outstanding 4.1% notes due 2023;

• Barrick (PD) Australia Finance Pty. Ltd.’s $400 million of outstanding 4.95% notes due 2020;

• Barrick North America Finance LLC’s $1.35 billion of outstanding 4.4% notes due 2021;

• Barrick North America’s $500 million of outstanding 6.8% notes due 2018; and

• Barrick’s $475 million of outstanding 6.95% notes due 2019.

If there are sufficient funds to purchase some, but not all, of the notes tendered of any series, the amount of notes purchased in that series will be subject to proration.

The tender offer will expire at midnight ET on Dec. 29.

Holders must tender their notes by 5 p.m. ET on Dec. 14, the early tender date, to be eligible to receive the total consideration. The total consideration includes an early tender premium of $30 per $1,000 principal amount of notes accepted for purchase.

Holders who tender their notes after the early tender date but at or prior to the expiration date will be eligible to receive only the tender offer consideration, which is the total consideration less the early tender premium.

The purchase price for each series will be determined using a fixed spread for that series over the applicable yield based on the bid-side price of the U.S. Treasury security specified for that series. Pricing will be determined at 2 p.m. ET on Dec. 15.

The reference security and the fixed spread, respectively, are as follows:

• 1.25% Treasury due Nov. 15, 2018 and 120 basis points for the 2.5% notes;

• 2.25% Treasury due Nov. 15, 2025 and 300 bps for the 3.85% notes;

• 2.25% Treasury due Nov. 15, 2025 and 325 bps for the 4.1% notes;

• 1.625% Treasury due Nov. 30, 2020 and 190 bps for the 4.95% notes;

• 1.625% Treasury due Nov. 30, 2020 and 300 bps for the 4.4% notes;

• 1.25% Treasury due Nov. 15, 2018 and 250 bps for the 6.8% notes; and

• 1.625% Treasury due Nov. 30, 2020 and 230 bps for the 6.95% notes.

In addition, the company will pay accrued interest from the last applicable interest payment date up to but excluding the settlement date.

Tenders may be withdrawn at any time at or prior to 5 p.m. ET on Dec. 14.

The issuers expect the settlement date to be Dec. 30.

The tender offer is not conditioned on the tender of a minimum principal amount of notes.

The dealer managers for the offer are Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106), Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057) and RBC Capital Markets, LLC (877 381-2099 or 212 618-7822). Global Bondholder Services Corp. (866 470-3800 or 212 430-3774) is the information agent.

Barrick is a Toronto-based gold mining company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.