Summary
Newmont Corporation announced the successful closing of a $2.0 billion senior notes offering on September 18, 2009. This offering comprises $900 million in 5.125% Senior Notes due 2019 and $1.1 billion in 6.250% Senior Notes due 2039. The net proceeds, approximately $1,966 million after expenses, are earmarked for working capital and general corporate purposes. These include funding exploration activities, development of the company's project pipeline, and potential acquisition initiatives. Pending these uses, a portion of the revolving credit facility will be repaid, and the remainder will be invested in short-term liquid investments.
Key Highlights
- 1Newmont closed a $2.0 billion senior notes offering, divided into $900 million of 5.125% notes due 2019 and $1.1 billion of 6.250% notes due 2039.
- 2The offering generated net proceeds of approximately $1,966 million after deducting underwriting discounts and offering expenses.
- 3Proceeds are intended for working capital and general corporate purposes, including exploration, project development, and potential acquisitions.
- 4Pending specific uses, the company plans to repay a portion of its senior revolving credit facility and invest the remaining funds in short-term liquid investments.
- 5The notes are unsecured obligations of the company and will rank equally with existing and future unsecured senior debt.
- 6The notes are guaranteed on a senior unsecured basis by Newmont USA Limited.
- 7The offering was registered under the Securities Act of 1933 and related documentation, including indentures and forms of notes/guaranties, are publicly available.