Southern Copper Hits the Road

Peru-based Southern Copper Corporation plans to meet bond investors in Europe, Latin America and the US starting Friday. The Baa2/BBB/BBB rated unit of Mexican miner and railroad operator Grupo Mexico will visit accounts beginning in Santiago on Friday, followed by visits to London and Lima the following Monday, and New York and Los Angeles Tuesday, before wrapping up in Boston on Wednesday. A global SEC-registered transaction may follow subject to market conditions. The senior unsecured bonds will comprise two tranches with maturities of 2022 and 2042, says Fitch, which assigns a BBB rating. Proceeds will be used for general corporate purposes including capital expenditures. Credit Suisse, HSBC and Morgan Stanley have been mandated. Southern Copper last issued in April 2010, pricing a dual tranche $1.5bn split between a $400m 10-year and $1.1bn 30-year tranche with Credit Suisse, Goldman Sachs and Morgan Stanley. The 2020 and 2040 bonds were trading at 3.5% and 5.5% in yield respectively, according to a trader.