S&P rates Iamgold notes B+

S&P said it assigned its B+ issue-level rating and 3 recovery rating to Iamgold Corp.’s proposed $450 million of senior unsecured notes due 2028. The 3 recovery rating on the notes indicates an expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in the event of default.

The company plans to use the proceeds primarily to redeem its 7% $400 million of unsecured notes due April 2025 and the balance for general corporate purposes.

“The modest increase in gross debt does not materially affect our estimate of the company’s credit measures or view of the issuer credit rating and reduce Iamgold’s debt maturity risk during the construction of Cote Gold,” S&P said in a press release.

Iamgold’s B+ rating and stable outlook are unchanged following the proposed issuance, the agency said.

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