Mining company Buenaventura issues $550m in senior notes

The proceeds from the notes will be used to pay in full Buenaventura’s tax debt of approximately $541.5 million.

Posted Wednesday, July 28th 2021
Mining company Buenaventura issues $550m in senior notes

Buenaventura

Peruvian firm Garcia Sayan Abogados (GSA) has advised Compañia de Minas Buenaventura S.A.A. and its subsidiary (Buenaventura) as special counsel in a successful international issuance and placement of senior notes worth $550 million due to mature in 2026. The transaction took place on July 23rd.

The notes were offered in a private placement under Rule 144A of the Securities Act of 1933, and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act. In addition, the notes are fully and unconditionally guaranteed by Compañía Minera Condesa S.A., Inversiones Colquijirca S.A., Procesadora Industrial Río Seco S.A. and Consorcio Energético Huancavelica S.A., all of them subsidiaries of Buenaventura.

Buenaventura is Peru's largest publicly traded precious and base metal company. According to local media, Buenaventura's general manager, Leandro García, indicated that the company intends to use the proceeds to pay the Sunat claim in full,  approximately $541.5 million.

“The transaction will help strengthen the company's credit profile, extending maturities, reducing financing costs and freeing up credit lines. The success of our bond issue is an important reflection of investor confidence in our company, and in Peru's economic recovery and future stability," he said.

Buenaventura was advised internally by its legal manager, Gulnara La Rosa, and its attorney Rodrigo Vargas. Externally,  GSA, in Peru, and Milbank, in New York, advised on the transaction. The GSA team in charge of the advisory services included partners Luis Gastañeta and Alfonso Tola, both specialists in corporate and financial law, and senior associate, María Soledad Gastañeta, a commercial and contract law expert.

BBVA Securities Inc. and BofA Securities, Inc. were the Global Coordinators of the issuance, while Banco BTG Pactual S.A. – Cayman Branch, Credicorp Capital Sociedad Agente de Bolsa S.A., Itau BBA USA Securities, Inc. and Santander Investment Securities Inc. were the joint book-runners.

The banks were advised by Cleary, Gottlieb, Steen & Hamilton in New York and Miranda & Amado in Peru. Miranda & Amado was represented by Juan Luis Avendaño, Gabriela Dañino and Rafael Santin.