Newmont Corporation has announced the pricing of its public offering of $1.0 billion aggregate principal amount of 2.600% sustainability-linked senior notes due 2032.
Subject to customary conditions, the offering is expected to close on December 20, 2021.
The offering is being made pursuant to the Company’s shelf registration statement filed with the Securities and Exchange Commission.
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.
Newmont will be first in the mining industry to issue a sustainability-linked bond, representing a further step in aligning its financing strategy with environmental, social and governance commitments.
The coupon of the Notes will be linked to Newmont’s performance against the 2030 emissions reduction targets and the representation of women in senior leadership roles targets. Earlier this year, Newmont entered into a $3.0 billion sustainability-linked revolving credit facility, one of the first in the industry.
The interest rate payable on the Notes will be increased if the Company fails to reach the stated targets by 2030.
Newmont published a Sustainability-Linked Bond Framework and obtained a second party opinion on the framework from ISS ESG.
The company estimates that the net proceeds to us from the offering will be approximately $992 million, after deducting estimated discounts (before expenses).
The company intends to use the net proceeds of this offering, the repurchase of (i) the Company’s outstanding 3.700% Notes due 2023, and (ii) outstanding 3.700% Notes due 2023 issued by the company’s wholly-owned subsidiary, Goldcorp Inc., for up to certain aggregate maximum principal tender amounts specified in a related offer to purchase, which are accepted for purchase and any remaining portion for working capital and other general corporate purposes.
The company has also issued a notice of redemption for its outstanding 3.500% Notes due 2022. The notice calls for the redemption of all of the Company’s outstanding 2022 Notes on December 15, 2021.
BMO Capital Markets Corp., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC will act as joint book-running managers for the offering and Credit Suisse Securities (USA) LLC will also act as sustainability-linked bond structuring advisor for the offering.