Nexa Resources Prices Offering of US$500 Million 6.600% Senior Unsecured Notes Due 2037
Nexa Resources (NYSE: NEXA) has successfully priced an offering of US$500 million in senior unsecured notes with a 6.600% interest rate, maturing in 2037. The notes, guaranteed by Nexa Resources Cajamarquilla S.A. and Nexa Recursos Minerais S.A., are expected to close on April 8, 2025.
The proceeds will be primarily used to fund a cash tender offer for existing notes due 2027 and 2028, redeem remaining 2027 notes not repurchased in the tender offers, and for general corporate purposes including liability management transactions. The offering is exclusively available to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S of the U.S. Securities Act.
Nexa Resources (NYSE: NEXA) ha fissato con successo un'offerta di 500 milioni di dollari USA in obbligazioni senior non garantite con un tasso d'interesse del 6,600%, in scadenza nel 2037. Le obbligazioni, garantite da Nexa Resources Cajamarquilla S.A. e Nexa Recursos Minerais S.A., dovrebbero chiudere il 8 aprile 2025.
I proventi saranno principalmente utilizzati per finanziare un'offerta di acquisto in contante per obbligazioni esistenti in scadenza nel 2027 e 2028, riscattare le obbligazioni del 2027 non riacquistate nelle offerte di acquisto e per scopi aziendali generali, inclusi i transazioni di gestione delle passività. L'offerta è esclusivamente disponibile per acquirenti istituzionali qualificati ai sensi della Regola 144A e per persone non statunitensi ai sensi della Regolamentazione S del Securities Act degli Stati Uniti.
Nexa Resources (NYSE: NEXA) ha logrado fijar exitosamente una oferta de 500 millones de dólares estadounidenses en notas senior no garantizadas con una tasa de interés del 6,600%, que vencen en 2037. Las notas, garantizadas por Nexa Resources Cajamarquilla S.A. y Nexa Recursos Minerais S.A., se espera que cierren el 8 de abril de 2025.
Los ingresos se utilizarán principalmente para financiar una oferta de compra en efectivo para notas existentes que vencen en 2027 y 2028, redimir las notas de 2027 que no se compraron en las ofertas de compra y para fines corporativos generales, incluidas las transacciones de gestión de pasivos. La oferta está disponible exclusivamente para compradores institucionales calificados bajo la Regla 144A y para personas no estadounidenses bajo la Regulación S de la Ley de Valores de EE. UU.
Nexa Resources (NYSE: NEXA)는 5억 달러의 고위험 무담보 채권을 6.600%의 이자율로 성공적으로 가격을 책정했으며, 만기는 2037년입니다. 이 채권은 Nexa Resources Cajamarquilla S.A.와 Nexa Recursos Minerais S.A.가 보증하며, 2025년 4월 8일에 마감될 예정입니다.
수익금은 주로 2027년 및 2028년에 만기가 도래하는 기존 채권에 대한 현금 입찰 제안을 지원하고, 입찰 제안에서 재구매되지 않은 2027년 채권을 상환하며, 부채 관리 거래를 포함한 일반 기업 목적에 사용될 예정입니다. 이 제안은 144A 규칙에 따라 자격이 있는 기관 투자자와 미국 외의 개인에게만 제공됩니다.
Nexa Resources (NYSE: NEXA) a réussi à fixer une offre de 500 millions de dollars US en obligations senior non garanties avec un taux d'intérêt de 6,600%, arrivant à maturité en 2037. Les obligations, garanties par Nexa Resources Cajamarquilla S.A. et Nexa Recursos Minerais S.A., devraient se clôturer le 8 avril 2025.
Les produits seront principalement utilisés pour financer une offre de rachat en espèces pour des obligations existantes arrivant à maturité en 2027 et 2028, racheter les obligations restantes de 2027 qui n'ont pas été rachetées dans le cadre des offres de rachat, et pour des fins corporatives générales, y compris des transactions de gestion des passifs. L'offre est exclusivement disponible pour des acheteurs institutionnels qualifiés en vertu de la règle 144A et pour des personnes non américaines en vertu de la réglementation S de la loi américaine sur les valeurs mobilières.
Nexa Resources (NYSE: NEXA) hat erfolgreich ein Angebot über 500 Millionen US-Dollar an unbesicherten Senior-Anleihen mit einem Zinssatz von 6,600% bepreist, das im Jahr 2037 fällig wird. Die Anleihen, die von Nexa Resources Cajamarquilla S.A. und Nexa Recursos Minerais S.A. garantiert werden, sollen am 8. April 2025 abgeschlossen werden.
Die Erlöse werden hauptsächlich verwendet, um ein Barangebot für bestehende Anleihen, die 2027 und 2028 fällig werden, zu finanzieren, die verbleibenden Anleihen von 2027, die nicht im Rahmen der Angebotsangebote zurückgekauft wurden, einzulösen und für allgemeine Unternehmenszwecke, einschließlich der Verwaltung von Verbindlichkeiten. Das Angebot ist ausschließlich für qualifizierte institutionelle Käufer gemäß Regel 144A und für nicht-US-Personen gemäß der Regulierung S des US-Wertpapiergesetzes verfügbar.
- Successful pricing of US$500 million notes offering indicates strong market confidence
- Long-term debt maturity until 2037 improves debt profile
- Strategic liability management through refinancing of shorter-term 2027 and 2028 notes
- New debt carries a relatively high 6.600% interest rate
- Increases overall debt burden with US$500 million new notes
Insights
Nexa Resources' US$500 million debt offering represents a significant liability management initiative for a company with an
This transaction is primarily focused on restructuring the company's debt profile rather than raising new capital for operations or growth initiatives. By pushing out maturities by a decade, Nexa is reducing near-term refinancing risk and potentially creating more financial flexibility in the medium term.
The guarantees from two subsidiaries - Nexa Resources Cajamarquilla S.A. and Nexa Recursos Minerais S.A. - provide additional security for noteholders but also mean these operating entities' assets are serving as backing for this long-term debt.
Without knowing the interest rates on the existing 2027 and 2028 notes being replaced, it's impossible to determine if this refinancing will increase or decrease Nexa's interest expense burden. However, locking in 6.600% for 12 years creates long-term predictability in the company's capital structure during a period of macroeconomic uncertainty.
For a mining company where capital structure flexibility is crucial due to the cyclical nature of commodity markets, this proactive liability management could provide added financial stability, though at the cost of potentially higher long-term interest obligations depending on future rate environments.
Luxembourg, Luxembourg--(Newsfile Corp. - April 1, 2025) - Nexa Resources S.A. (NYSE: NEXA) ("Nexa Resources" or "Nexa" or the "Company") announced that it has priced today an offering of US
The Notes are guaranteed by Nexa Resources Cajamarquilla S.A. and Nexa Recursos Minerais S.A.
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 were offered and will be sold only to qualified institutional buyers in accordance with Rule 144A under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and to non-U.S. persons in accordance with Regulation S under the Securities Act. When issued, the Notes will not have been registered under 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.
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. Any offers of the Notes will be made exclusively through a private offering memorandum.
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/247024
FAQ
What is the interest rate and maturity of NEXA's new senior unsecured notes offering?
How much is NEXA Resources raising through its 2037 notes offering?
What will NEXA use the proceeds from the 2037 notes offering for?
When is the closing date for NEXA's US$500 million notes offering?
Which entities are guaranteeing NEXA's 2037 notes?
