Summary
Southern Copper Corporation (SCCO) filed an 8-K on May 10, 2006, reporting the issuance of an additional $400 million in 7.500% senior unsecured notes due 2035. These new notes are fungible with the existing $600 million of the same notes issued in July 2005, bringing the total principal amount outstanding for this series to $1 billion. The issuance aims to enhance the company's liquidity and financial flexibility. The notes are not registered under the Securities Act, but SCCO has committed to filing a registration statement for an exchange offer or a shelf registration for resales, providing investors with liquidity in the registered market.
Key Highlights
- 1Southern Copper Corporation issued an additional $400 million in 7.500% notes due 2035.
- 2The new notes are fungible with the previously issued $600 million 7.500% notes due 2035.
- 3The total principal amount outstanding for this note series is now $1 billion.
- 4The notes are senior unsecured obligations and rank pari passu with other unsecured and subordinated indebtedness.
- 5The company has the option to redeem the notes at a make-whole premium.
- 6SCCO will file a registration statement for an exchange offer or shelf registration for resales of the notes.
- 7The issuance occurred on May 9, 2006.
Frequently Asked Questions
This 8-K filing announces the entry into a material definitive agreement related to the issuance of an additional $400 million of 7.500% notes due 2035. It also establishes a direct financial obligation for the company.
This issuance increases Southern Copper's total outstanding debt for this particular note series to $1 billion. These notes are senior unsecured obligations, ranking equally with other unsecured and subordinated debt of the company.
No, the notes are not registered under the Securities Act or any U.S. state securities laws. However, Southern Copper has agreed to file a registration statement to allow for an exchange offer or for the resale of these notes, which provides a path to registered securities for investors.
The company has the option to redeem some or all of the notes. If redeemed, the company must pay a make-whole premium in addition to any accrued and unpaid interest up to the redemption date.