Penoles to Raise Domestic USD Bond

Mexican mining conglomerate Penoles is preparing to sell $200m-$240m in dollar-denominated bonds in Mexico’s domestic market, according to regulatory filings. The 10-year fixed-rate notes have an expected pricing date of June 13. Seeking to match liabilities with USD cash flows, the miner plans to use proceeds to fund expansion and cost reduction projects as well as for general corporate purposes, says Moody’s, which assigns a national scale Aa1 rating. The notes will be guaranteed by the company’s principal subsidiaries, excluding Fresnillo, the agency adds. Banamex, BBVA Bancomer and Santander are managing the new deal, rated Aa1/AAA on a national scale. The Mexican miner last sold $530m in dollar-denominated bonds in Mexico’s domestic market in September 2010, pricing a $400m 10-year tranche 5.15%, and a $130m 2015 at Libor+178bp.