Buenaventura Issues 144A/Reg S Offering of US$650 million Senior Unsecured Notes Due 2032

Rhea-AI Summary

Buenaventura (NYSE: BVN), Peru's largest publicly-traded precious metals mining company, has successfully issued US$650 million in senior unsecured notes due 2032. The notes bear an interest rate of 6.800% per annum and are fully guaranteed by Inversiones Colquijirca, Procesadora Industrial Río Seco, and Consorcio Energético Huancavelica.

The notes were offered through private placement to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S. The company plans to use the proceeds to refinance its outstanding 5.500% Senior Notes due 2026 and for general corporate purposes. This transaction aims to strengthen Buenaventura's credit profile and extend debt maturities.

Positive

• Successfully raised US$650 million through senior unsecured notes
• Extension of debt maturity to 2032
• Strong investor confidence demonstrated by successful bond issuance
• Strengthening of company's credit profile

Negative

• Higher interest rate of 6.800% compared to previous 5.500% notes
• Increased debt burden with US$650 million new notes

Insights

Fixed Income Analyst

This $650 million senior notes issuance marks a strategic financial maneuver for Buenaventura, Peru's largest precious metals mining company. The 6.800% coupon rate, while higher than the existing 5.500% 2026 notes, reflects current market conditions and the company's proactive approach to liability management.

The transaction's structure reveals several notable strengths:

• The joint and several guarantees from three subsidiaries - Inversiones Colquijirca, Procesadora Industrial Río Seco and Consorcio Energético Huancavelica - effectively enhance the notes' credit profile
• The 8-year tenor provides extended maturity runway, reducing refinancing risk and improving debt maturity profile
• The Rule 144A/Reg S format enables access to a broad international investor base, demonstrating global market confidence

The successful placement, despite challenging market conditions for mining companies, indicates strong investor appetite and confidence in Buenaventura's operational fundamentals, supported by its diversified portfolio of wholly-owned mines and strategic partnerships, notably the 19.58% stake in Cerro Verde copper mine. The refinancing provides enhanced financial flexibility and strengthens the company's ability to navigate commodity price cycles while maintaining operational momentum.

LIMA, Peru--(BUSINESS WIRE)-- Compañia de Minas Buenaventura S.A.A. (“Buenaventura” or “the Company”) (NYSE: BVN; Lima Stock Exchange: BUE.LM), Peru’s largest publicly-traded precious metals mining company, announced today the successful issuance of its senior unsecured notes (the “Notes”) due 2032 in an aggregate amount of US$650 million. The Notes mature on February 4, 2032 and bear interest at a rate of 6.800% per annum.

The Notes were offered by means of a private placement to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States to non-U.S. persons in accordance with Regulation S under the Securities Act. The Notes are fully and unconditionally guaranteed jointly and severally by Inversiones Colquijirca S.A., Procesadora Industrial Río Seco S.A. and Consorcio Energético Huancavelica S.A.

Buenaventura intends to use the net proceeds from this offering to refinance its outstanding 5.500% Senior Notes due 2026 and for general corporate purposes. This transaction will contribute to strengthening the Company’s credit profile and extending maturities. The success of our bond issuance is an important reflection of investors’ confidence in our Company.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor will there be any sale of these securities, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state or jurisdiction. The Notes have not been registered under the Securities Act, or any applicable state securities laws, and have been offered only to qualified institutional buyers pursuant to Rule 144A promulgated under the Securities Act and outside the United States to non-U.S. persons in accordance with Regulation S under the Securities Act. Unless so registered, the Notes may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and any applicable state securities laws.

Company Description

Compañía de Minas Buenaventura S.A.A. is Peru’s largest, publicly traded precious and base metals Company and a major holder of mining rights in Peru. The Company is engaged in the exploration, mining development, processing and trade of gold, silver and other base metals via wholly-owned mines and through its participation in joint venture projects. Buenaventura currently operates several mines in Peru (Orcopampa*, Uchucchacua*, Julcani*, Tambomayo*, La Zanja*, El Brocal and Coimolache).

The Company owns 19.58% of Sociedad Minera Cerro Verde, an important Peruvian copper producer (a partnership with Freeport-McMorRan Inc. and Sumitomo Corporation).

For a printed version of the Company’s 2023 Form 20-F, please contact the persons indicated above, or download a PDF format file from the Company’s web site.
(*) Operations wholly owned by Buenaventura

Note on Forward-Looking Statements

This press release may contain forward-looking information (as defined in the U.S. Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties, including those concerning Cerro Verde’s costs and expenses, results of exploration, the continued improving efficiency of operations, prevailing market prices of gold, silver, copper and other metals mined, the success of joint ventures, estimates of future explorations, development and production, subsidiaries’ plans for capital expenditures, estimates of reserves and Peruvian political, economic, social and legal developments. These forward-looking statements reflect the Company’s view with respect to Cerro Verde’s future financial performance. Actual results could differ materially from those projected in the forward-looking statements as a result of a variety of factors discussed elsewhere in this Press Release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250204642708/en/

Contacts in Lima:

Daniel Dominguez, Chief Financial Officer

(511) 419 2540

Sebastián Valencia, Head of Investor Relations

(511) 419 2591 / sebastian.valencia@buenaventura.pe

Contact in NY:

Barbara Cano

(646) 452 2334

barbara@inspirgroup.com

Company Website: https://buenaventura.com/en/inversionista/

Source: Compañía de Minas Buenaventura S.A.A.

FAQ

What is the interest rate and maturity of BVN's new US$650 million notes?

Buenaventura's new notes bear an interest rate of 6.800% per annum and mature on February 4, 2032.

How will Buenaventura (BVN) use the proceeds from the 2032 notes?

The proceeds will be used to refinance the outstanding 5.500% Senior Notes due 2026 and for general corporate purposes.

Which companies are guaranteeing BVN's 2032 notes?

The notes are fully guaranteed by Inversiones Colquijirca, Procesadora Industrial Río Seco, and Consorcio Energético Huancavelica.

What is the difference between BVN's new and previous notes' interest rates?

The new 2032 notes have a 6.800% interest rate, compared to the previous 5.500% rate on the 2026 notes, representing a 1.3% increase.

How were BVN's 2032 notes offered to investors?

The notes were offered through private placement to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S.