Newmont Mining Corp announces pricing of its senior notes

By Cepi Setiadi

Newmont Mining Corporation today announced the pricing of its public offering of $2.5 billion of senior notes, consisting of 3.500% senior notes due 2022 in the principal amount of $1.5 billion and 4.875% senior notes due 2042 in the principal amount of $1.0 billion. The company says that subject to customary conditions, the offering is expected to close on March 8, 2012. Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are acting as the joint book-running managers for the offering.

The offering is being made pursuant to the Company's self registration statement filed with the Securities and Exchange Commission. The Company said the Notes will be senior unsecured obligations of the Company and will rank equally with the Company's existing and future unsecured senior debt and senior to the Company's future subordinated debt. "The Notes will be guaranteed on a senior unsecured basis by the Company's subsidiary Newmont USA Limited," said the company on its news release.

The Company estimates that the net proceeds from the offering will be approximately $2,460 million, after deducting estimated discounts and expenses. The Company intends to use the net proceeds of this offering for repayment of the outstanding balance under the Company's senior revolving credit facility (which was drawn upon in January and February 2012 principally to repay the Company's 2012 convertible senior notes and to pay a portion of the payments in connection with the exercise of the early purchase option under the sale-leaseback for the Company's refractory ore treatment plant in Nevada).

Secondly it will be used for settlement of certain forward starting swaps contracts and also remaining payments to be made during 2012 in connection with the exercise of the early purchase option under the sale-leaseback agreement relating to the Company's refractory ore treatment plant in Nevada. The proceeds also will be used for general corporate purposes (which may include funding associated with exploration, the development of the Company's project pipeline or dividends or other forms of capital return to the Company's shareholders). The Company intends to place the remaining proceeds in short-term liquid investments.

Editing by David Mustakim