Moody’s gives B1 rating to Volcan notes

Moody’s Investors Service said it assigned a B1 rating to Volcan Compania Minera SAA’s proposed up to $450 million in senior unsecured notes. Moody’s affirmed the B1 corporate family and senior unsecured note due 2022 ratings. The agency changed the outlook to stable from negative.

The change in Volcan’s outlook was prompted by the company’s announcement of a couple of transactions that, if successfully executed, would materially reduce refinancing risk, the agency said.

“Accordingly, in addition to the proposed $450 million bond offering, the plan also includes a $400 million equity injection in the 3Q21, for a total combined $850 million cash inflow,” Moody’s said in a press release.

Proceeds will be used to refinance the bulk of its $835 million in debt maturing in February 2022 with an effective 25% debt reduction at the closing of the transactions.

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