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6 December 2017
Hochschild announces Redemption of 7.750% Bonds due 2021
Hochschild Mining plc ("Hochschild" or "the Company") announces that it has today (through its wholly-owned subsidiary, Compañia Minera Ares S.A.C) instructed the trustee to give notice to the noteholders in respect of the redemption of all outstanding Notes with outstanding principal, in aggregate, of US$294,775,000 (ISIN: US204474AA86 (Rule 144A) USP3318GAA69 (Reg S) and CUSIP: 204474AA8 (Rule 144) P3318GAA6 (Reg S)).
The redemption is expected to be undertaken pursuant to Article V of the indenture and paragraph 5(b) of the Notes with settlement expected to occur on 23 January 2018. The redemption price is set at $103.875 per $100 principal amount of the Notes, equating to a total payment of US$306,197,531.
The redemption will be financed through existing cash resources in addition to borrowings under committed facilities, in aggregate, of US$200 million on the terms outlined in the table below and is expected to result in a significant reduction in the Company's interest payments.
Principal |
Bank |
Term |
Interest Rate |
$100 million |
BBVA/Scotiabank |
1 year |
1.75% (BBVA)/Libor+0.32% (Scotiabank) |
$100 million |
Citibank, N.A./The Bank of Nova Scotia |
2 years (1 year grace period) |
Libor+0.7% |
Ignacio Bustamante, Chief Executive Officer, said:
"The early repayment of the bonds is testament to the strength of our operations and our ability to generate positive cashflows. Also, we are now able to refinance the balance of our debt at significantly better terms thus substantially reducing interest payments and improving the financial results of the company. As guided, we continue to deliver on our strategy to reduce debt and strengthen the Company's balance sheet."
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Enquiries:
Hochschild Mining plc
Charles Gordon +44 (0)20 3709 3264
Head of Investor Relations
Hudson Sandler
Charlie Jack +44 (0)207 796 4133
Public Relations
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About Hochschild Mining plc
Hochschild Mining plc is a leading precious metals company listed on the London Stock Exchange (HOCM.L / HOC LN) with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild has over fifty years' experience in the mining of precious metal epithermal vein deposits and currently operates four underground epithermal vein mines, three located in southern Peru and one in southern Argentina. Hochschild also has numerous long-term projects throughout the Americas.
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Forward looking statements
This announcement may contain forward looking statements. By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will or may occur in the future. Actual results, performance or achievements of Hochschild Mining plc may, for various reasons, be materially different from any future results, performance or achievements expressed or implied by such forward looking statements.
The forward looking statements reflect knowledge and information available at the date of preparation of this announcement. Except as required by the Listing Rules and applicable law, the Board of Hochschild Mining plc does not undertake any obligation to update or change any forward looking statements to reflect events occurring after the date of this announcement. Nothing in this announcement should be construed as a profit forecast.
Note
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (Regulation (EU) No.596/2014). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
LEI: 549300JK10TVQ3CCJQ89
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