Summary
Southern Copper Corporation (SCCO) announced the successful completion of a significant debt offering totaling U.S.$2 billion on April 23, 2015. This offering consisted of U.S.$500 million in 3.875% notes due 2025 and U.S.$1.5 billion in 5.875% notes due 2045. The net proceeds from this issuance, approximately U.S.$1.97 billion after expenses, are designated for general corporate purposes, with a specific focus on financing the company's capital expenditure program. This substantial debt issuance underscores SCCO's strategy to fund its growth initiatives and maintain operational flexibility. Investors should note the dual maturity structure of the debt, which diversifies repayment timelines. The company has entered into agreements with major underwriters and has amended its existing indenture to facilitate the issuance of these new notes, which include standard covenants limiting certain financial activities.
Key Highlights
- 1Completion of a U.S.$2 billion registered public offering of debt securities on April 23, 2015.
- 2Offering includes U.S.$500 million of 3.875% notes due 2025 and U.S.$1.5 billion of 5.875% notes due 2045.
- 3Net proceeds of approximately U.S.$1.97 billion after offering expenses.
- 4Proceeds are intended for general corporate purposes, including financing the capital expenditure program.
- 5Entered into an Underwriting Agreement with several prominent underwriters.
- 6Supplemental indentures executed with Wells Fargo Bank, National Association, as trustee, to govern the new notes.
- 7New notes are subject to covenants limiting liens, sale and leaseback transactions, and asset disposals.