Successful Preliminary Results of Newmont Corporation's Debt Redemption Offers: Total of $2 Billion in Bonds
Newmont Corporation, a leading player in the mining industry, has announced its tender offers to purchase up to $2 billion aggregate principal amount of certain outstanding series of notes. The tender offers, which are structured as separate and distinct for each series of notes, will expire on August 25, 2025, at 5:00 p.m. Eastern Time.
Key financial details and terms include:
- Maximum Tender Amount: Up to $2 billion in aggregate principal amount of notes.
- Tender Offers Expiry: August 25, 2025, at 5:00 p.m. ET.
- Early Tender Results: Newmont reported successful early tender results, indicating strong investor participation.
- Purpose and Context: This tender offer is a proactive liability management initiative, supported by Newmont’s strong financial position, including record free cash flow of $1.7 billion in Q2 2025 and robust earnings with adjusted net income of $1.6 billion for the quarter.
These tender offers aim to allow Newmont to repurchase outstanding debt at advantageous terms, optimizing the company’s balance sheet following a record quarter and strong cash generation.
Notably, Newmont expects to accept for purchase all of the 6.250% senior notes due 2039 and 4.875% senior notes due 2042 tendered, and some of the 5.750% notes due 2041 tendered, subject to proration. Similarly, Newmont expects to accept for purchase all of the 2.800% senior notes due 2029 and 2.250% senior notes due 2030 tendered, and some of the 3.250% notes due 2030 tendered, also subject to proration.
The Total Consideration per $1,000 principal amount of the Notes accepted for purchase will be determined by reference to the applicable fixed spread and yield for each series of Notes.
Newmont Corporation, a company founded in 1921 and listed in the S&P 500 Index since 1925, is the world’s leading gold company. It is also a major producer of copper, zinc, lead, and silver. Recognized for its principled environmental, social, and governance practices, Newmont's assets, prospects, and talent are located in favorable mining jurisdictions worldwide.
The Tender Offers for the Pool 1 Notes will expire on August 25, 2025, as will the Tender Offers for the Pool 2 Notes, despite Newmont not expecting to accept for purchase all Pool 2 Notes tendered due to exceeding the Pool 2 Maximum Amount. It is important to note that none of Newmont, the dealer managers, the information and tender agent, or the trustees with respect to the Notes make any recommendation as to whether holders of the Notes should tender their Notes.
Newmont has issued a cautionary statement regarding forward-looking statements, advising that actual results could differ materially from those expressed due to various factors. The Offer to Purchase and related documents have not been filed with the U.S. Securities and Exchange Commission. The Tender Offers are being made solely pursuant to the Offer to Purchase and only to such persons and in such jurisdictions as is permitted under applicable law.
For more detailed discussion of risks and other factors, investors are advised to refer to Newmont's annual report on Form 10-K for the year ended December 31, 2024.
- Newmont Corporation, with its strong financial position and earnings, is planning to utilize the funds from the tendered notes, primarily in the finance sector, for restructuring its debt and optimizing its balance sheet.
- As a leading player in the mining industry, Newmont Corporation, which also operates in the energy sector through its production of copper and other minerals, is offering to purchase notes to allocate resources for future investment opportunities.
