Gold miner Barrick prices $3 billion debt offer

29 Apr, 2013

TORONTO: Barrick Gold Corp said on Monday that it would issue some $3 billion in debt securities to pay down a revolving credit facility, repay principal on notes due in 2013, and for general corporate purposes.

The world's largest gold miner will offer $650 million in 2.5 percent notes due 2018, $1.5 billion in 4.1 percent notes due in 2023, and $850 million in 5.75 percent notes due in 2043. The 2043 notes are guaranteed by the company.

Toronto-based Barrick, which had previously said that it planned to issue long-term debt securities to further improve liquidity, expects the offering to close around May 2, 2013.

The company's total debt stood $14.8 billion as of March 31, according to its first-quarter earnings release.

Barrick has struggled in recent weeks with the sharp fall in gold prices, a shareholder revolt over its executive compensation plan and new setbacks at its flagship Pascua-Lama development project on the border of Chile and Argentina.

The company was downgraded last week by both Moody's and S&P, after a Chilean court ordered a partial suspension of construction at Pascua-Lama.

<Center><b><i>Copyright Reuters, 2013</b></i><br></center>

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