Summary
Newmont Corporation (NEM) announced on December 6, 2021, the pricing of a $1 billion offering of 2.600% sustainability-linked senior notes due 2032. The net proceeds, estimated at approximately $990 million after expenses, are primarily intended for the repurchase of its outstanding 3.700% Notes due 2023 and Goldcorp Inc.'s 3.700% Notes due 2023. Any remaining funds will be used for working capital and general corporate purposes. This debt offering signifies Newmont's strategic move to refinance existing debt with a lower interest rate and to enhance its sustainability profile through the issuance of sustainability-linked notes. The transaction is expected to close around December 20, 2021, subject to customary conditions. The notes will be unsecured obligations of the company, ranking equally with existing and future unsecured senior debt.
Key Highlights
- 1Newmont priced a $1 billion offering of 2.600% sustainability-linked senior notes due 2032.
- 2The offering aims to repurchase outstanding 3.700% Notes due 2023 (Newmont and Goldcorp).
- 3Net proceeds are estimated to be approximately $990 million after underwriting discounts and offering expenses.
- 4The sustainability-linked nature of the notes aligns with the company's ESG initiatives.
- 5The offering is expected to close on or about December 20, 2021.
- 6The new notes will be unsecured and rank equally with existing senior unsecured debt.
- 7The company is actively managing its debt structure by refinancing older debt with newer, lower-cost, and potentially ESG-linked instruments.