New Issue: Mineral Resources prices upsized $1.25 billion notes in two tranches

By Paul A. Harris

Portland, Ore., April 27 – Mineral Resources Ltd. priced an upsized $1.25 billion of senior notes (Ba3/B+/BB) in two tranches on Wednesday, according to a market source.

The issue was increased from an expected $1 billion.

The deal featured a $625 million tranche of 5.5-year notes that priced at par to yield 8%. The yield printed at the tight end of both yield talk and initial guidance, which were both set at 8% to 8¼%.

Mineral Resources also price a $625 million tranche of eight-year notes at par to yield 8½%. Again, the yield printed at the tight end of both yield talk and initial guidance, which were both set at 8½% to 8¾%.

The deal was very well received, according to a sellside source, who added that the order book was heard to be playing to $3.5 billion of orders across both tranches at around 1 p.m. ET on Wednesday.

JPMorgan ran the books.

The Perth, Australia-based producer of iron ore, lithium and manganese plans to use the proceeds to fund capital expenditures.

Issuer:	Mineral Resources
Amount:	$1.25 billion, increased from $1 billion
Issue:	Senior notes
Bookrunner:	JPMorgan
Trade date:	April 27
Settlement date:	May 2
Ratings:	Moody's: Ba3
	S&P: B+
	Fitch: BB
Distribution:	Rule 144A and Regulation S for life
Marketing:	Roadshow
5.5-year notes
Amount:	$625 million
Term:	5.5 years
Coupon:	8%
Price:	Par
Yield:	8%
Call protection:	2.5 years
Price talk:	8% to 8¼%
Eight-year notes
Amount:	$625 million
Term:	Eight years
Coupon:	8½%
Price:	Par
Yield:	8½%
Call protection:	Three years
Price talk:	8½% to 8¾%

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