By Angela McDaniels
Tacoma, Wash., Oct. 14 – Barrick Gold Corp. priced its tender offer for seven series of outstanding notes and increased the maximum purchase price for the offer to $850 million from $750 million, according to company press releases.
As of 5 p.m. ET on Oct. 13, the early tender date, investors had tendered $2,655,994,000 principal amount of notes as follows, listed in order of priority acceptance level:
• $123,456,000 of the $251,669,000 2.5% notes due 2018;
• $484,227,000 of the $750 million 6.95% notes due 2019. These notes are subject to a cap of $275 million principal amount;
• $662,722,000 of the $1.25 billion 3.85% notes due 2022;
• $619,258,000 of the $1.5 billion 4.1% notes due 2023;
• $125,928,000 of the $400 million 4.95% notes due 2020;
• $176,152,000 of the $500 million 6.8% notes due 2018; and
• $464,251,000 of the $1.35 billion 4.4% notes due 2021.
The tender offer began Sept. 29 and will continue until midnight ET on Oct. 27.
Tendered notes may no longer be withdrawn as of the early tender deadline.
Pricing for the offers was set at 2 p.m. ET on Oct. 14 using a reference security plus a fixed spread as noted in the table below.
In each case, the total consideration includes an early tender premium of $30 for each $1,000 principal amount of notes tendered by the early tender date.
Holders who tender their notes after the early deadline will receive the total consideration less the early premium.
Holders will also receive accrued interest up to but excluding the settlement date, Oct. 28.
The $850 million maximum purchase price includes principal amount and premium, if any, but excludes accrued interest.
Barrick Gold is the offeror for the 2.5% notes, the 6.95% notes, the 3.85% notes and the 4.1% notes. Barrick (PD) Australia Finance Pty. Ltd. is the offeror for the 4.95% notes, and Barrick North America Finance LLC is the offeror for the 6.8% notes and the 4.4% notes.
The dealer managers are Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106), Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057) and RBC Capital Markets, LLC (877 381-2099 or 212 618-7822).
The information agent is Global Bondholder Services Corp. (866 470-3800 or 212 430-3774).
Barrick is a Toronto-based gold mining company.
Barrick Gold tender offer pricing
| Notes | Reference Treasury | Reference yield | Fixed spread | Total consideration
|
| 2.5% notes | 1% due Sept. 15, 2018 | 0.837% | 120 bps | $1,011.27
|
| 6.95% notes | 1.375% due Sept. 30, 2020 | 1.289% | 105 bps | $1,120.89
|
| 3.85% notes | 2% due Aug. 15, 2025 | 1.993% | 300 bps | $937.80
|
| 4.1% notes | 2% due Aug. 15, 2025 | 1.993% | 325 bps | $929.80
|
| 4.95% notes | 1.375% due Sept. 30, 2020 | 1.289% | 190 bps | $1,068.88
|
| 6.8% notes | 1% due Sept. 15, 2018 | 0.837% | 215 bps | $1,104.45
|
| 4.4% notes | 1.375% due Sept. 30, 2020 | 1.289% | 350 bps | $981.08
|
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