Coeur Mining, Inc. Announces Expiration of Tender Offer for its Outstanding 5.875% Senior Notes Due 2024

Rhea-AI Summary

Coeur Mining announced the expiration of its cash tender offer for 5.875% senior notes due 2024, with valid tenders totaling $102,817,000, or 44.70% of total outstanding notes. The company will purchase all validly tendered notes and expects payment on March 1, 2021. Remaining notes will be redeemed at 102.938% of their principal amount. Goldman Sachs is the dealer manager for this transaction. The tender offer is part of a broader debt financing strategy, though results may vary due to unforeseen risks.

Positive

• 44.70% of 2024 Notes validly tendered indicates strong market participation.
• Company plans to redeem notes not tendered, potentially enhancing financial stability.

Negative

• 44.70% participation means 55.30% of the notes were not tendered, indicating a lack of confidence from some investors.
• The tender offer's success is contingent upon the completion of a broader debt financing transaction.

Coeur Mining, Inc. (NYSE: CDE) (the “Company”) announced today that its previously announced cash tender offer (the “Tender Offer”) to purchase any and all of its 5.875% senior notes due 2024 (the “2024 Notes”) expired at 5:00 p.m., New York City time, on February 26, 2021 (the “Expiration Time”). As of the Expiration Time, $102,817,000 aggregate principal amount of the 2024 Notes (or 44.70% of the total aggregate principal amount of the 2024 Notes outstanding) were validly tendered, which excludes $396,000 aggregate principal amount of the 2024 Notes (or 0.17% of the total aggregate principal amount of the 2024 Notes outstanding) that remain subject to the guaranteed delivery procedures set forth in the Company’s Offer to Purchase, dated February 22, 2021 (the “Offer to Purchase”). The Company expects to accept for payment all such 2024 Notes validly tendered and not validly withdrawn in the Tender Offer and expects to make payment for the 2024 Notes on March 1, 2021, or, in the case of 2024 Notes validly tendered and accepted for purchase pursuant to the guaranteed delivery procedures, on March 3, 2021, in each case, subject to the closing of the Company’s previously announced debt financing transaction and the satisfaction or waiver by the Company of the other conditions listed in the Offer to Purchase. Following the consummation of the Tender Offer, the Company intends to redeem any 2024 Notes not validly tendered and purchased in the Tender Offer, at a redemption price equal to 102.938% of the principal amount redeemed, plus any accrued and unpaid interest to the redemption date.

Goldman Sachs & Co. LLC is acting as the dealer manager for the Tender Offer. The information agent and tender agent is D.F. King & Co., Inc. Copies of the Offer to Purchase are available at www.dfking.com/cde or by contacting the information agent at (800) 859-8509 (toll free) or (212) 269-5550 (collect) or by email at cde@dfking.com. Questions regarding the Tender Offer should be directed to Goldman Sachs & Co. LLC at (800) 828-3182.

This press release shall not constitute an offer to sell or a solicitation of an offer to purchase the securities described herein or any other securities, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. This press release does not constitute a notice of redemption under the optional redemption provisions of the Indenture relating to the 2024 Notes.

About Coeur

Coeur Mining, Inc. is a U.S.-based, well-diversified, growing precious metals producer with five wholly-owned operations: the Palmarejo gold-silver complex in Mexico, the Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska, the Wharf gold mine in South Dakota, and the Silvertip silver-zinc-lead mine in British Columbia. In addition, the Company has interests in several precious metals exploration projects throughout North America.

Note Regarding Forward-Looking Statements

The statements contained in this release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including without limitation, statements regarding the Company’s intentions, expectations or beliefs regarding the Tender Offer, the Company’s previously announced debt financing transaction or any redemption of the 2024 Notes. The Company’s current expectations and beliefs are expressed in good faith and the Company believes there is a reasonable basis for them. There can be no assurance, however, that future developments affecting the Company will be those that the Company has anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the Company’s control) or other assumptions that may cause actual results to be materially different from those expressed or implied by such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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FAQ

What was the outcome of Coeur Mining's tender offer for 2024 Notes?

Coeur Mining's tender offer for its 5.875% senior notes due 2024 expired with $102,817,000 validly tendered, representing 44.70% of the total.

When will Coeur Mining pay for the validly tendered 2024 Notes?

Coeur Mining expects to make payment for the validly tendered 2024 Notes on March 1, 2021.

What is the redemption price for the 2024 Notes not tendered?

The redemption price for the 2024 Notes not validly tendered will be 102.938% of the principal amount, plus accrued interest.

Who is managing the tender offer for CDE's 2024 Notes?

Goldman Sachs & Co. LLC is acting as the dealer manager for the tender offer.

What risks are associated with Coeur Mining's tender offer for 2024 Notes?

There are risks and uncertainties that may affect the success of the tender offer and its related debt financing.