By William Gullotti and Cristal Cody
Buffalo, N.Y., March 31 – Northern Star Resources Ltd. (NST) priced $600 million of 6.125% 10-year notes (Baa3/BBB-/BBB-) on Thursday, according to a market source.
The Regulation S and Rule 144A notes were priced at a spread of 270 basis points over Treasuries, tight to initial talk in the 300 bps area.
BofA, HSBC and JPMorgan are the bookrunners.
“NST's rating is driven by its large operational scale among gold miners, average cost position, healthy mine life of 12 years, favorable mining jurisdictions, and strong credit metrics for its rating. The company is well-placed to progress towards meeting its five-year production target of 2 million ounces (oz.), from 1.6 million oz. in the financial year ended June 30, 2022 (FY22),” Fitch Ratings said in a press release.
“Growing operational scale will improve the company’s cost position into the first half of the industry cost curve.”
According to S&P Global Ratings, Northern Star plans to use the proceeds for general corporate purposes and will ensure the company has a sound liquidity position to fund its capex pipeline, including the Kalgoorlie Consolidated Gold Mines expansion project.
Northern Star is an international gold producer based in Australia.
| Issuer: | Northern Star Resources Ltd.
|
| Amount: | $600 million
|
| Issue: | Notes
|
| Maturity: | April 11, 2033
|
| Bookrunners: | BofA, HSBC and JPMorgan
|
| Coupon: | 6.125%
|
| Spread: | Treasuries plus 270 bps
|
| Pricing date: | March 30
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | Rule 144A and Regulation S
|
| Initial talk: | Treasuries plus 300 bps area
|
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