Summary
Southern Copper Corporation (SCCO) filed an 8-K on April 19, 2010, to report the completion of a significant $1.5 billion public offering of debt. This offering comprised $400 million of 5.375% Notes due 2020 and $1.1 billion of 6.750% Notes due 2040. The net proceeds from this substantial issuance, approximately $1.15 billion, are intended for general corporate purposes, including the financing of the company's capital expenditure program. The filing details the Underwriting Agreement with Credit Suisse Securities (USA) LLC, Goldman, Sachs & Co., and Morgan Stanley & Co. Incorporated, as well as the Indenture and supplemental indentures with Wells Fargo Bank, National Association, as trustee. These agreements govern the terms of the newly issued notes and include covenants restricting certain corporate actions like incurring liens or engaging in sale and leaseback transactions, aimed at protecting bondholders.
Key Highlights
- 1Completed a $1.5 billion public debt offering on April 16, 2010.
- 2The offering consisted of $400 million in 5.375% Notes due 2020 and $1.1 billion in 6.750% Notes due 2040.
- 3Net proceeds from the offering were approximately $1.15 billion.
- 4Proceeds are designated for general corporate purposes, including capital expenditures.
- 5Entered into an Underwriting Agreement with Credit Suisse, Goldman Sachs, and Morgan Stanley.
- 6Executed Indenture and Supplemental Indentures with Wells Fargo Bank as trustee.
- 7Covenants in the indentures include restrictions on liens, sale and leaseback transactions, and asset disposals.