Ero Copper talks $400 million eight-year notes to yield in 6˝% area; pricing Wednesday

By Paul A. Harris

Portland, Ore., Jan. 26 – Ero Copper Corp. talked its $400 million offering of eight-year senior notes (B1/B/B) to yield in the 6˝% area, according to market sources.

Official talk comes at the wide end of initial guidance in the low-to-mid 6% area.

Books close at 12:30 p.m. ET on Wednesday, and the deal is set to price thereafter.

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 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 Vancouver, B.C.-based copper producer plans to use the proceeds to repay bank debt, for capital expenditures at the Boa Esperanca 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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