Hochschild Loan Moves toward Close

Peruvian miner Hochschild is in the process of syndicating a $340m bridge loan, according to people familiar with the process. Bank of America, BBVA and Goldman Sachs are leading the 1-year facility, with pricing based on a ratings grid at Libor+350bp out of the box. It is expected to close by the end of this month. Earlier this month, Hochschild launched an operation to acquire International Minerals, owner of 40% of the Pallancata mine and Inmaculada advanced project in Peru, for $298m, with funding coming through the bridge facility and a $73m equity placement done earlier this month. In the acquisition, International Minerals holders were to receive $2.38 per share and one share in a new spinoff company holding International’s non-Peru assets. The target’s shareholders were to vote on the deal in November or December. Bank of America Merrill Lynch and Goldman Sachs managed the placement of shares.