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Newmont closes $1B debt offering

Newmont (NYSE: NEM) boss Tom Palmer has welcomed the close of the gold major’s US$1 billion senior notes offering.
Newmont closes $1B debt offering Newmont closes $1B debt offering Newmont closes $1B debt offering Newmont closes $1B debt offering Newmont closes $1B debt offering

Newmont’s Tom Palmer said investors recognised strength of the gold miner’s business over the long term

Staff reporter

The company said it had received aggregate proceeds of about $985 million from the offering of 2.25% senior notes due 2030.

"The success of our $1 billion debt offering and the positive response from bondholders is a result of the confidence in our capital discipline and the strength of our business over the long term," the president and CEO said.

"The lower-cost capital we raised will be used to partially refinance outstanding notes coming due in 2022 and 2023, lowering our effective interest rate and extending our maturity profile."

Newmont said it would use the proceeds, with cash from the balance sheet as necessary, to repurchase outstanding 3.5% senior notes due 2022, 3.7% notes due 2023 and 3.7% notes due 2023 issued by subsidiary Goldcorp.

Newmont also announced the pricing terms of the tender offers for the above notes and said the total consideration included an early tender payment of $30 per $1,000 principal amount of notes of each series, validly tendered and accepted for purchase.

Newmont's share price had reached a 7.5-year high of $52.50 earlier this month but market volatility has seen it range from $34.51 to $46.37 so far this week.

It closed down 9.2% yesterday to $41.57, capitalising Newmont at $33.6 billion.