Capstone Copper Corp. announced that it is launching an offering of $500 million aggregate principal amount of senior notes due 2033 (the ?Notes?). The aggregate principal amount, interest rate and other terms of the Notes will be determined at pricing and are dependent upon market conditions and other factors.
The Notes will be senior unsecured obligations of the Company and will be guaranteed by each of the Company?s subsidiaries that guarantees its senior secured revolving credit facility. Interest on the Notes will accrue from the issue date and will be payable semi-annually. The Company intends to apply the gross proceeds from the sale of the Notes to repay project financing debt at its Mantoverde S.A. subsidiary, to pay down debt on the Company?s senior secured revolving credit facility, and for general corporate purposes.
The Notes will be offered and sold in the United States only to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the United States Securities Act of 1933, as amended (the ?Securities Act?), and to non-U.S. persons outside the United States in compliance with Regulation S under the Securities Act. The Notes will be offered and sold in Canada on a private placement basis pursuant to certain prospectus exemptions.
