By Andrea Heisinger
New York, March 29 - Barrick Gold Corp. sold $2 billion of notes (Baa1/A-/) in two tranches on Thursday, an informed source said.
The $1.25 billion of 3.85% 10-year paper sold at 99.943 to yield 3.857% with a spread of Treasuries plus 170 basis points. The tranche priced at the tight end of talk in the 175 bps area, plus or minus 5 bps, the source said.
There is a make-whole call at 25 bps over Treasuries.
There was a second tranche of $750 million of 5.25% 30-year bonds priced at 99.82 to yield 5.262% with a spread of 200 bps over Treasuries. The bonds also sold tight to guidance in the 205 bps area, plus or minus 5 bps.
The 30-year notes have a make-whole call at Treasuries plus 30 bps.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and RBC Capital Markets LLC ran the books.
The deal was done under Rule 144A and Regulation S.
Barrick was last in the market with a $4 billion deal in four parts on May 24, 2011. The 4.4% 10-year notes from that offering sold at 130 bps over Treasuries and the 5.75% 30-year bonds sold at 150 bps.
The gold mining company is based in Toronto.
| Issuer: | Barrick Gold Corp.
|
| Issue: | Notes
|
| Amount: | $2 billion
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC
|
| Distribution: | Rule 144A, Regulation S
|
| Trade date: | March 29
|
| Settlement date: | April 3
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: A-
|
|
|
| 10-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | April 1, 2022
|
| Coupon: | 3.85%
|
| Price: | 99.943
|
| Yield: | 3.857%
|
| Spread: | Treasuries plus 170 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 175 bps area, plus or minus 5 bps
|
|
|
| 30-year bonds
|
| Amount: | $750 million
|
| Maturity: | April 1, 2042
|
| Coupon: | 5.25%
|
| Price: | 99.82
|
| Yield: | 5.262%
|
| Spread: | Treasuries plus 200 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Price talk: | 205 bps area, plus or minus 5 bps
|
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