Ero Copper starts roadshow for $400 million eight-year notes; initial talk low-to-mid 6% area

By Paul A. Harris

Portland, Ore., Jan. 24 – Ero Copper Corp. started a roadshow on Monday for a $400 million offering of eight-year senior notes (B1/B/B), according to market sources.

The notes will be guaranteed on a senior unsecured basis by the company’s 99.6%-owned Mineracao Caraiba SA subsidiary, according to a 6-K filing with the Securities and Exchange Commission.

The deal, which was set to kick off on a Monday conference call with investors, is in the market with initial guidance in the low-to-mid 6% area, a trader said.

The roadshow runs through Wednesday.

Goldman Sachs is the left bookrunner. Jefferies is the joint bookrunner.

The Rule 144A and Regulation S for life notes become callable after three years at par plus 50% of the coupon.

The Vancouver, B.C.-based copper producer plans to use the proceeds to repay bank debt, for capital expenditures at the Boa Esperança property and for general corporate purposes.

Ero Copper is focused on copper production growth from the MCSA Mining Complex located in Bahia, Brazil.

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