S&P rates Minsur notes BB+

S&P said it assigned its BB+ issue-level rating to Minsur SA's planned senior unsecured notes of up to $500 million with an expected maturity of 10 years.

“The rating on the proposed notes is at the same level as our issuer credit rating on Minsur, reflecting our view that there's no significant subordination risk present in its capital structure,” S&P said in a press release.

The company aims to use proceeds to refinance the $300 senior unsecured term loan due 2026, which Minsur used to fund the cash tender for its senior notes due 2024 (around 58.6% of the total notes). The company also plans to use proceeds to refinance a portion of its senior unsecured notes due 2024 and about $95 million in other short-term debt obligations.

“We consider this transaction as debt neutral because the company will use the proceeds mainly to refinance its existing debt,” S&P said.

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