Nexa issues $500 million bond
Mining News Pro - Nexa Resources announced on Tuesday an offering of $500 million 6.5% senior unsecured notes due January 2028. Closing is expected on June 18.
The notes are guaranteed by Nexa Resources Cajamarquilla S.A., Nexa Resources Perú S.A.A. and Nexa Recursos Minerais S.A.
The offering marks a return to the bond market for Nexa after a three-year break.
Nexa currently owns and operates five long-life underground mines – three in the Central Andes of Peru and two in the state of Minas Gerais in Brazil – and is developing the Aripuanã Project as its sixth underground mine in Mato Grosso, Brazil.
The miner aims to begin commercial production at its Aripuanã zinc project, in the country’s Mato Grosso state, by 2021.
Once in operation, the $354 million project would become the world’s second-biggest zinc mine.
The company, led by former Vale Canada chief Tito Martins, consolidated ownership of the low-cost underground zinc polymetallic mine project in August last year, through the acquisition of Canadian junior Karmin Explorations.
Advancing construction of Aripuanã is part of Nexa’s ongoing efforts to grow and expand its presence in the global zinc and copper markets.
Nexa said it expects to use the proceeds of this offering to repay a portion of its existing debt and the remainder for corporate purposes.
Tuesday afternoon, Nexa’s stock was trading up 8% on the NYSE. The company has a $723 million market capitalization.