Buenaventura Issues Inaugural 144A/Reg S Offering of US$550 million Senior Unsecured Notes Due 2026

BY Business Wire | CORPORATE | 07/23/21 04:01 PM EDT

LIMA, Peru--(BUSINESS WIRE)-- Compa?ia de Minas Buenaventura S.A.A. (?Buenaventura? or ?the Company?) , Peru?s largest publicly-traded precious metals mining company, today announced the successful issuance of its senior unsecured notes (the ?Notes?) due 2026 in an aggregate amount of US$550 million. The Notes mature on July 23, 2026 and a coupon rate of 5.500% per annum.

The Notes were offered in a private placement to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the ?Securities Act?), and outside the United States to non-U.S. persons in accordance with Regulation S under the Securities Act. The Notes are fully and unconditionally guaranteed jointly and severally by Compa??a Minera Condesa S.A., Inversiones Colquijirca S.A., Procesadora Industrial R?o Seco S.A. and Consorcio Energ?tico Huancavelica S.A.

Leandro Garcia, Buenaventura?s CEO, commented: ?Buenaventura intends to use the net proceeds from this offering to prepay the SUNAT claim in full. The transaction will contribute to strengthening the Company?s credit profile, extending maturities, reducing financing costs and freeing up lines of credit. The success of our bond issuance is an important reflection of investors? confidence in our Company, and in Peru?s economic recovery and future stability.?

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor will there be any sale of these securities, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state or jurisdiction. The Notes have not been registered under the Securities Act, or any applicable state securities laws, and have been offered only to qualified institutional buyers pursuant to Rule 144A promulgated under the Securities Act and outside the United States to non-U.S. persons in accordance with Regulation S under the Securities Act. Unless so registered, the Notes may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and any applicable state securities laws.

Company Description

Compa??a de Minas Buenaventura S.A.A. is Peru?s largest, publicly traded precious and base metals Company and a major holder of mining rights in Peru. The Company is engaged in the exploration, mining development, processing and trade of gold, silver and other base metals via wholly-owned mines and through its participation in joint venture projects. Buenaventura currently operates several mines in Peru (Orcopampa*, Uchucchacua*, Julcani*, Tambomayo*, El Brocal, La Zanja and Coimolache).

The Company owns 43.65% of Minera Yanacocha S.R.L (a partnership with Newmont Mining Corporation & Sumitomo Corporation), an important precious metal producer and 19.58% of Sociedad Minera Cerro Verde, an important Peruvian copper producer (a partnership with Freeport-McMorRan Inc., Sumitomo Corporation & Sumitomo Metals).

For a printed version of the Company?s 2018 Form 20-F, please contact the persons indicated above, or download a PDF format file from the Company?s web site. (*) Operations wholly owned by Buenaventura

Note on Forward-Looking Statements

This press release may contain forward-looking information (as defined in the U.S. Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties, including those concerning the Company?s, Yanacocha?s and Cerro Verde?s costs and expenses, results of exploration, the continued improving efficiency of operations, prevailing market prices of gold, silver, copper and other metals mined, the success of joint ventures, estimates of future explorations, development and production, subsidiaries? plans for capital expenditures, estimates of reserves and Peruvian political, economic, social and legal developments. These forward-looking statements reflect the Company?s view with respect to the Company?s, Yanacocha?s and Cerro Verde?s future financial performance. Actual results could differ materially from those projected in the forward-looking statements as a result of a variety of factors discussed elsewhere in this Press Release.

Source: Compa?ia de Minas Buenaventura S.A.A.

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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