By Rebecca Melvin and Cristal Cody
Concord, N.H., April 8 – South32 Treasury Ltd., a subsidiary of South32 Ltd., priced $700 million of 4.35% senior notes due 2032 (Baa1), according to a company release Friday.
The notes will be guaranteed by South32 and certain of its other wholly owned subsidiaries.
Pricing with a spread of Treasuries plus 175 basis points, the notes came 25 bps low to talk in the 200 bps area.
Proceeds of the Rule 144A and Regulation S notes are intended to be used together with cash on hand for repayment of amounts drawn under its acquisition bridge facility, which was used to partially fund the company’s acquisition of 45% of the Sierra Gorda copper mine.
The issuance represents the company’s inaugural U.S. dollar-denominated bond issue.
“Completion will enable our repayment of the $800 million short-term acquisition bridge facility, that was drawn in February to support our acquisition of a 45% interest in the Sierra Gorda copper mine," South32 Chief Financial Officer Katie Tovich said in the release.
BofA Securities, Barclays, Mizuho and UBS worked as bookrunners.
The mining and metals company is headquartered in Perth, Western Australia.
| Issuer: | South32 Treasury Ltd.
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| Guarantor: | South32 Ltd.
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| Amount: | $700 million
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| Issue: | Guaranteed senior notes
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| Bookrunners: | BofA Securities, Barclays, Mizuho and UBS
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| Maturity: | April 14, 2032
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| Coupon: | 4.35%
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| Spread: | Treasuries plus 175 bps
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| Announcement date: | April 8
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| Settlement date: | April 14
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| Rating: | Moody’s: Baa1
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | Treasuries plus 200 bps area
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