Penoles completes $377 million private placement

By Caroline Salls

Pittsburgh, April 19 - Industrias Penoles, SA de CV has completed a new $377 million private placement, according to a company news release.

Proceeds will be used to replace a $258.25 million portion of the company's $380 million of 8.39% structured silver-payable notes issued in 1997 and to finance company projects.

The new financing was placed in the United States to institutional investors, principally securities companies.

The placement will include $342 million of notes due April 2018 with a 6.55% interest rate and $35 million of notes due April 2021 with an interest rate of 6.65%.

The new placement will increase the company's total long-term debt to $498.75 million from $380 million.

With the new placement, the company extended the life of its long-term liabilities to 10.2 years from 3.2 years, reducing the interest on the replaced amount to 6.55% from 8.39%, and obtained additional resources for $118.75 million under more favorable terms and conditions.

Penoles is a Mexico City-based mining conglomerate.

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