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(Alliance News) - South32 Ltd on Friday announced the pricing of a 10-year USD700 million bond as part of a plan to acquire a 45% interest in a copper mine in Chile.
In February, the Perth-based diversified miner bought an interest in the Sierra Gorda copper mine for USD1.4 billion from Tokyo-based miner and metal smelting firm Sumitomo Metal Mining Co Ltd and Japanese trading firm Sumitomo Corp.
South32 said it intends to use the cash proceeds from the bond offering, together with cash on hand, to repay amounts drawn down under its acquisition debt facility to partially fund the Sierra Gorda acquisition.
South32 funded the transaction with USD600 million from its cash reserves, and USD800 million from a debt facility.
"Completion will enable our repayment of the USD800 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," said South32 Chief Financial Officer Katie Tovich.
The USD700 million bond will pay interest on April 14 and October 14 each year, commencing on October 14, at a rate of 4.35% per annum. The senior unsecured notes are due 2032.
By Artwell Dlamini; artwelldlamini@alliancenews.com
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