Summary
Southern Copper Corporation (SCCO) announced on July 27, 2005, the issuance of two series of senior unsecured notes totaling $800 million. This financing includes $200 million in 6.375% notes maturing in 2015 and $600 million in 7.500% notes maturing in 2035. These notes are ranked pari passu with other unsecured and subordinated indebtedness. The company has committed to filing registration statements for an exchange offer or resales of these notes to ensure they can be freely traded, with potential interest rate increases if these provisions are not met. The indentures governing these notes include standard covenants limiting liens, sale and leaseback transactions, and subsidiary indebtedness, among other provisions, with specified exceptions and events of default.
Key Highlights
- 1Southern Copper Corp issued $800 million in senior unsecured notes.
- 2The notes consist of $200 million maturing in 2015 at 6.375% interest.
- 3The notes also include $600 million maturing in 2035 at 7.500% interest.
- 4Interest payments are semi-annual, commencing January 27, 2006.
- 5The company agreed to file registration statements for an exchange offer or resales of the notes.
- 6The indentures contain covenants restricting liens, sale-leasebacks, and subsidiary debt.
- 7The notes are ranked pari passu with other unsecured and subordinated debt.