There’s a rare corporate bond deal coming in Australia’s gold sector, with Northern Star running to ratings houses ahead of a mooted $US600 million raising.
Northern Star, the country’s second-largest gold producer, looks ready for bond investors after securing a BBB- rating from Fitch and Baa3 from Moody’s for its unsecured notes.Trevor CollensThe plan for the notes to be guaranteed by Northern Star subsidiaries that held at least 85 per cent of the company’s EBITDA and total assets.
It would use the proceeds for general corporate purposes and leave some in the can for capex at the Kalgoorlie Gold Mines expansion once its hit the final investment decision, according to SNorthern Star’s assets in Alaska and Western Australia expected to produce 1.56 to 1.68 million gold ounces. It had “solid liquidity” at December end across $410 million cash, $85 million gold bullion and $650 million indrawn credit facilities, at Moody’s count. It has said it wants to keep net debt/EBITDA below 1.5-times and liquidity between $1 billion to $1.5 billion.
co-edits Street Talk, specialising in private equity, investment banking, M&A and equity capital markets. He has 10 years' experience as a business journalist and worked at PwC, auditing and advising financial services companies.