The company plans to issue senior notes due August 2031 with a 2.63% coupon to fund the redemptions of its 4.76% series C senior notes due 2022, its 4.91% series D senior notes due 2024, its 4.78% series B senior notes due 2023 and its 4.95% senior notes due 2024, reducing its overall outstanding debt, overall interest and carrying charges as well as extending its maturity.
The company had $716.7 million outstanding on these four notes at the end of the June quarter and will presumably use some of its $702 million in cash to complete the redemptions.
Yamana had $994.9 million in debt at the end of the June quarter comprising $190.7 million in current debt and $804.2 million in long-term debt. Once the redemptions of the four notes is completed, Yamana will have $280.6 million in a 4.625% senior note due December 2027 outstanding in addition to the $500 million from the new bonds.
Shares in Yamana Gold are trading at C$5.81, valuing the company at $5.6 billion.