Nexa Resources Intends to Offer Senior Unsecured Notes
Nexa Resources (NYSE: NEXA) has announced plans to offer new senior unsecured notes, backed by guarantees from Nexa Resources Cajamarquilla S.A. and Nexa Recursos Minerais S.A. The company intends to use the proceeds for:
- Funding a cash tender offer for existing notes due 2027 and 2028
- Redeeming any remaining 2027 notes not repurchased in the tender offers
- General corporate purposes, including liability management transactions
The new notes will be unsecured obligations of Nexa, with guarantees ranking equally in right of payment with other unsecured and unsubordinated debt obligations. The offering is to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S of the Securities Act.
Nexa Resources (NYSE: NEXA) ha annunciato piani per offrire nuove obbligazioni senior non garantite, supportate da garanzie di Nexa Resources Cajamarquilla S.A. e Nexa Recursos Minerais S.A. L'azienda intende utilizzare i proventi per:
- Finanziare un'offerta in contante per le obbligazioni esistenti in scadenza nel 2027 e nel 2028
- Riscattare eventuali obbligazioni 2027 rimanenti non riacquistate nelle offerte di acquisto
- Scopi aziendali generali, comprese le operazioni di gestione delle passività
Le nuove obbligazioni saranno obbligazioni non garantite di Nexa, con garanzie che hanno pari diritto di pagamento rispetto ad altre obbligazioni non garantite e non subordinate. L'offerta è destinata a investitori istituzionali qualificati ai sensi della Regola 144A e a persone non statunitensi ai sensi della Regolamentazione S del Securities Act.
Nexa Resources (NYSE: NEXA) ha anunciado planes para ofrecer nuevas notas senior no garantizadas, respaldadas por garantías de Nexa Resources Cajamarquilla S.A. y Nexa Recursos Minerais S.A. La compañía tiene la intención de utilizar los ingresos para:
- Financiar una oferta en efectivo para las notas existentes que vencen en 2027 y 2028
- Redimir cualquier nota 2027 restante que no haya sido recomprada en las ofertas de compra
- Propósitos corporativos generales, incluidas las transacciones de gestión de pasivos
Las nuevas notas serán obligaciones no garantizadas de Nexa, con garantías que tienen el mismo derecho de pago que otras obligaciones no garantizadas y no subordinadas. La oferta está dirigida a compradores institucionales calificados bajo la Regla 144A y a personas no estadounidenses bajo la Regulación S de la Ley de Valores.
Nexa Resources (NYSE: NEXA)는 Nexa Resources Cajamarquilla S.A.와 Nexa Recursos Minerais S.A.의 보증을 바탕으로 새로운 선순위 무담보 채권을 제공할 계획을 발표했습니다. 회사는 수익금을 다음과 같은 용도로 사용할 계획입니다:
- 2027년 및 2028년에 만기가 도래하는 기존 채권에 대한 현금 입찰 제안 자금 조달
- 입찰 제안에서 재구매되지 않은 나머지 2027년 채권 상환
- 부채 관리 거래를 포함한 일반 기업 목적
새로운 채권은 Nexa의 무담보 의무가 되며, 보증은 다른 무담보 및 비하위 채무 의무와 동일한 지급 권리를 가집니다. 이 제안은 144A 규정에 따라 자격을 갖춘 기관 투자자와 증권법의 S 규정에 따라 비미국인에게 제공됩니다.
Nexa Resources (NYSE: NEXA) a annoncé des plans pour offrir de nouvelles obligations senior non garanties, soutenues par des garanties de Nexa Resources Cajamarquilla S.A. et Nexa Recursos Minerais S.A. La société a l'intention d'utiliser les produits pour :
- Financer une offre en espèces pour les obligations existantes arrivant à échéance en 2027 et 2028
- Racheter toutes les obligations restantes de 2027 qui n'ont pas été rachetées dans le cadre des offres d'achat
- Des fins d'entreprise générales, y compris des transactions de gestion des passifs
Les nouvelles obligations seront des obligations non garanties de Nexa, avec des garanties ayant un droit de paiement égal à d'autres obligations non garanties et non subordonnées. L'offre est destinée aux acheteurs institutionnels qualifiés en vertu de la règle 144A et aux personnes non américaines en vertu de la réglementation S de la loi sur les valeurs mobilières.
Nexa Resources (NYSE: NEXA) hat Pläne angekündigt, neue unbesicherte Senior-Anleihen anzubieten, die durch Garantien von Nexa Resources Cajamarquilla S.A. und Nexa Recursos Minerais S.A. abgesichert sind. Das Unternehmen beabsichtigt, die Erlöse für Folgendes zu verwenden:
- Finanzierung eines Barangebots für bestehende Anleihen mit Fälligkeit 2027 und 2028
- Einlösung aller verbleibenden Anleihen 2027, die nicht im Rahmen der Angebotsverfahren zurückgekauft wurden
- Allgemeine Unternehmenszwecke, einschließlich Schuldenmanagementtransaktionen
Die neuen Anleihen werden unbesicherte Verpflichtungen von Nexa sein, wobei die Garantien im Zahlungsrecht gleichrangig mit anderen unbesicherten und nicht nachrangigen Schulden stehen. Das Angebot richtet sich an qualifizierte institutionelle Käufer gemäß Regel 144A und an nicht-US-Personen gemäß der Regelung S des Wertpapiergesetzes.
- Proactive debt management through refinancing of existing notes
- Strong institutional backing with guarantees from two subsidiary companies
- Increase in debt obligations through new notes issuance
- investor accessibility due to restricted offering requirements
Insights
Nexa Resources' announcement to issue new senior unsecured notes represents a standard debt refinancing strategy aimed at restructuring their existing debt obligations. This move is primarily focused on replacing their 2027 and 2028 notes with new debt instruments, suggesting the company is proactively managing its debt maturity profile.
While the announcement lacks critical details about the size, interest rate, and maturity of the new offering, this type of liability management typically serves several strategic purposes. Companies generally refinance debt to extend maturities, potentially secure more favorable interest rates in the current environment, or improve overall debt terms and covenants.
The full guarantees from Nexa Resources Cajamarquilla S.A. and Nexa Recursos Minerais S.A. provide structural support for these notes, potentially making them more attractive to fixed income investors. This suggests confidence from the operating subsidiaries in the parent company's financial strategy.
It's worth highlighting that this announcement represents a liability management exercise rather than new capital raising for growth initiatives. The company is essentially reshuffling its debt structure rather than increasing its overall leverage position.
Without specifics on the offering terms, it's difficult to determine whether this refinancing will meaningfully improve Nexa's financial position or simply maintain the status quo. The market's reaction will largely depend on the pricing and terms of the new notes relative to the existing debt being replaced.
Luxembourg, Luxembourg--(Newsfile Corp. - March 31, 2025) - Nexa Resources S.A. (NYSE: NEXA) ("Nexa Resources", "Nexa" or the "Company") announced today its plan to offer new senior unsecured notes, guaranteed by Nexa Resources Cajamarquilla S.A. and Nexa Recursos Minerais S.A. (collectively, the "Guarantors"). Nexa intends to use the net proceeds from the offering primarily (i) to fund a cash tender offer for its existing notes due 2027 and notes due 2028 that are validly tendered and accepted for purchase pursuant to the tender offers announced today, (ii) to fund the redemption of any remaining existing notes due 2027 not repurchased in the tender offers, and, (iii) in the case of any remaining proceeds, for general corporate purposes, including liability management transactions.
The notes will be unsecured obligations of Nexa and will be fully and unconditionally guaranteed by the Guarantors. The guarantees will rank equally in right of payment with all other unsecured and unsubordinated debt obligations of the Guarantors.
The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") or state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. The Notes will be offered and sold only to persons who are either (1) qualified institutional buyers in accordance with Rule 144A under the Securities Act or (2) non-U.S. persons in accordance with Regulation S under the Securities Act.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall any such securities be sold in any state or jurisdiction where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the applicable securities laws.
About Nexa
Nexa is a large-scale, low-cost, integrated polymetallic producer, zinc being our main product, with over 65 years of experience developing and operating mining and smelting assets in Latin America. Nexa currently owns and operates four long-life underground polymetallic mines, two located in the Central Andes region of Peru, and two located in Brazil (one in the state of Minas Gerais and one in the state of Mato Grosso). Nexa also owns and operates one low-cost polymetallic open pit mine, also in the Central Andes region of Peru, and three smelters, two located in the state of Minas Gerais in Brazil (Três Marias and Juiz de Fora), and one, located in Lima, which is Cajamarquilla, the largest smelter in the Americas.
Nexa was among the top five producers of mined zinc globally in 2024 and one of the top five metallic zinc producers worldwide in 2024, according to Wood Mackenzie.
Cautionary Statement on Forward-Looking Statements
This news release contains certain forward-looking information and forward-looking statements as defined in applicable securities laws (collectively referred to in this news release as "forward-looking statements"). All statements other than statements of historical fact are forward-looking statements. The words "believe," "will," "may," "may have," "would," "estimate," "continues," "anticipates," "intends," "plans," "expects," "budget," "scheduled," "forecasts" and similar words are intended to identify estimates and forward-looking statements. Forward-looking statements are not guarantees and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Nexa to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results and developments may be substantially different from the expectations described in the forward-looking statements for a number of reasons, many of which are not under our control, among them, the activities of our competition, the future global economic situation, weather conditions, market prices and conditions, exchange rates, and operational and financial risks. The unexpected occurrence of one or more of the abovementioned events may significantly change the results of our operations on which we have based our estimates and forward-looking statements.
Our estimates and forward-looking statements may also be influenced by, among others, legal, political, environmental or other risks that could materially affect the potential development of our projects, including risks related to outbreaks of contagious diseases or health crises impacting overall economic activity regionally or globally, as well as risks relating to ongoing or future investigations by local authorities with respect to our business and operations and the conduct of our customers, including the impact to our financial statements regarding the resolution of any such matters.
Our estimates and forward-looking statements may also be influenced by regulatory changes in the countries where we operate, including new trade restrictions, tariff escalations, and policy shifts affecting cross-border commerce and supply chains. Certain forward-looking statements are based on third-party data, market forecasts, and assumptions that may be subject to change. Nexa does not guarantee the accuracy of such external data and disclaims any obligation to update these statements unless required by law.
These forward-looking statements related to future events or future performance and include current estimates, predictions, forecasts, beliefs and statements as to management's expectations with respect to, but not limited to, the business and operations of the Company and mining production, our growth strategy, the impact of applicable laws and regulations, future zinc and other metal prices, smelting sales, capex, expenses related to exploration and project evaluation, estimation of Mineral Reserves and/or Mineral Resources, mine life and our financial liquidity.
Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable and appropriate by management and qualified persons considering their experience are inherently subject to significant uncertainties and contingencies and may prove to be incorrect. Statements concerning future production costs or volumes are based on numerous assumptions of management regarding operating matters and on assumptions that demand for products develops as anticipated, that customers and other counterparties perform their contractual obligations, full integration of mining and smelting operations, that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts and supplies, labor disturbances, interruption in transportation or utilities, adverse weather conditions, and that there are no material unanticipated variations in metal prices, exchange rates, or the cost of energy, supplies or transportation, among other assumptions.
We assume no obligation to update forward-looking statements except as required under securities laws. Estimates and forward-looking statements refer only to the date when they were made, and we do not undertake any obligation to update or revise any estimate or forward-looking statement due to new information, future events or otherwise, except as required by law. Estimates and forward-looking statements involve risks and uncertainties and do not guarantee future performance, as actual results or developments may be substantially different from the expectations described in the forward-looking statements. Further information concerning risks and uncertainties associated with these forward-looking statements and our business can be found in our public disclosures filed under our profile on SEDAR+ (www.sedarplus.ca) and on EDGAR (www.sec.gov).
For further information, please contact:
Investor Relations Team
ir@nexaresources.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/246708
FAQ
What is the purpose of Nexa Resources' (NEXA) new senior unsecured notes offering?
Who are the guarantors of NEXA's new senior unsecured notes?
What are the eligibility requirements for purchasing NEXA's new notes?
How will NEXA's new notes offering affect existing noteholders of 2027 and 2028 bonds?
