Summary
Southern Copper Corporation (SCCO) announced on April 21, 2015, that it had successfully priced a significant debt offering totaling US$2.0 billion. This offering comprises two tranches: US$500 million of notes due in 2025 with a 3.875% interest rate, and US$1.5 billion of notes due in 2045 with a 5.875% interest rate. The transaction, which is expected to close around April 23, 2015, is a registered public offering underwritten by investment banks. The company intends to utilize the net proceeds from this offering for its general corporate purposes. A key component of this planned usage is the financing of SCCO's ongoing capital expenditure program, which suggests continued investment in the company's growth and operational development. This move indicates a strategic effort by Southern Copper to secure long-term funding for its expansion plans and operational needs.
Key Highlights
- 1Southern Copper Corporation (SCCO) priced a US$2.0 billion fixed-rate unsecured notes offering.
- 2The offering includes US$500 million of 3.875% Notes due 2025.
- 3The offering also includes US$1.5 billion of 5.875% Notes due 2045.
- 4The notes were issued in an underwritten, registered public offering.
- 5The transaction is expected to close on or about April 23, 2015.
- 6Proceeds will be used for general corporate purposes, including financing the capital expenditure program.