By Paul A. Harris
Portland, Ore., April 3 – Anglo American Capital plc priced $1 billion of senior notes (Ba1/BB+) in two tranches on Monday, according to a market source.
The deal included $300 million of five-year notes, which priced at par to yield 3¾%. The yield printed on top of final yield talk and inside of the 4¼% to 4 3/8% initial guidance.
In addition the London-based mining company priced $700 million of 10-year notes at par to yield 4¾%. The yield on the 10-year paper also came on top of final talk and inside of the 5 1/8% to 5¼% initial guidance.
Joint global coordinator Citigroup Global Markets Inc. will bill and deliver for the deal, which is being given a high-grade execution, the source said. Morgan Stanley & Co. is also a joint global coordinator.
Additional joint bookrunners were Credit Suisse, Goldman Sachs, UBS Investment Bank, BMO Capital Markets, Mizuho Securities, Santander and SMBC Nikko.
Anglo American kicked off a benchmark dual currency offering – dollars and euros – in the middle of March with investor meetings, then shelved the offer after finding rates insufficiently attractive, sources said.
The company, a subsidiary of Anglo American plc, plans to use the proceeds to fund tender offers for outstanding notes with maturities ranging from 2018 to 2020.
| Issuer: | Anglo American Capital plc
|
| Amount: | $1 billion
|
| Securities: | Senior notes
|
| Global coordinators: | Citigroup (bill and deliver), Morgan Stanley
|
| Joint bookrunners: | Credit Suisse, Goldman Sachs, UBS Investment Bank, BMO Capital Markets, Mizuho Securities, Santander, SMBC Nikko
|
| Trade date: | April 3
|
| Settlement date: | April 10
|
| Ratings: | Moody's: Ba1
|
| S&P: BB+
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Non-deal roadshow
|
|
|
| Five-year notes
|
| Amount: | $300 million
|
| Maturity: | April 10, 2022
|
| Coupon: | 3¾%
|
| Price: | Par
|
| Yield: | 3¾%
|
| Price talk: | 3¾%
|
|
|
| 10-year notes
|
| Amount: | $700 million
|
| Maturity: | April 10, 2027
|
| Coupon: | 4¾%
|
| Price: | Par
|
| Yield: | 4¾%
|
| Price talk: | 4¾%
|
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