Newmont Mining tenders for up to $500 million of four note series

By Susanna Moon

Chicago, Feb. 29 – Newmont Mining Corp. said it began a cash tender offer for up to $500 million, or more if the cap is increased, of four series of notes.

The notes covered by the offer are listed in order of priority, with pricing to be set at 11 a.m. ET on March 14 using the bid-side prices of a reference security and a fixed spread as follows:

• $900 million 5.125% senior notes due 2019, with $400 million tender sub-cap, will price using 0.75% Treasury notes due Feb. 15, 2019 plus 200 basis points;

• $1.1 billion 6.25% senior notes due 2039 will price using 3% Treasury notes due Nov. 15, 2045 plus 430 bps;

• $1.5 billion 3.5% senior notes due 2022 will price using 1.125% Treasury notes due Feb. 28, 2021 plus 280 bps; and

• $600 million 5.875% notes due 2035 will price using 3% Treasury notes due Nov. 15, 2045 plus 425 bps.

The total payment will include an early tender premium of $30.00 per $1,000 of principal amount of notes tendered by 5 p.m. ET on March 11, the early tender date.

Those who tender after the early deadline will receive the total amount less the early premium.

The tender offer will end at 11:59 p.m. ET on March 28.

The company also will pay accrued interest to but excluding the settlement date.

The total hypothetical purchase price for each $1,000 principal amount is $1,072.28 for the 5.125% notes, $921.98 for the 6.25% notes, $971.22 for the 3.5% notes and $894.60 for the 5.875% notes. The hypothetical price was set at 11 a.m. ET on Feb. 26, assuming a settlement date of March 29.

The offer is not conditioned on the tender of a minimum principal amount of notes but is subject to other conditions.

The lead dealer managers are BofA Merrill Lynch (888 292-0070 or 980 683-3215) and Goldman Sachs & Co. (800 828-3182 or 212 902-6941), and Mizuho Securities USA Inc. is a co-dealer manager. D.F. King & Co., Inc. (866 416-0643 or 212 269-5550) is the information agent.

Newmont is a Denver-based mining company.

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