Miner Readies Takeout

Peruvian miner Hochschild Mining is preparing an international debt issuance to replace acquisition debt, what would be its debut bond. The plan is for $350m in 2020 and 2023 notes issued through the Compania Minera Ares subsidiary and guaranteed by Hochschild and its main subsidiaries, according to ratings reports. A roadshow was scheduled to begin November 28 and visit Lima, Santiago, Los Angeles, London, New York, Zurich, Geneva, Boston and New York through Wednesday, according to people familiar with the matter. BBVA, Bank of America Merrill Lynch and Goldman Sachs are managing the transaction, rated Ba1/BB+. Hochschild closed October 1 a $340m bridge loan with that group of banks with pricing at Libor+350bp. Hochschild is in the process of acquiring International Minerals, owner of 40% of the Pallancata mine and Inmaculada advanced project in Peru, for $298m, with funding coming through the 1-year loan and a $73m equity placement done earlier this month. The target’s shareholders were to vote on the deal by December.