Mineral Resources (ASX:MIN) plans to raise US$700 million ($1.06 billion) of senior unsecured notes, subject to market and other conditions through a private offering.
An unsecured note is a loan that is not secured by the issuer’s assets. Unsecured notes are similar to debentures but offer a higher rate of return. Companies sell unsecured notes via private offerings to generate money for corporate initiatives such as share repurchases and acquisition.
MinRes, which has a market capitalisation of $7.68 billion, will use the cash proceeds from the offering to refinance its existing US$700 million senior unsecured notes due in May 2027.
The notes will be guaranteed by certain wholly owned subsidiaries of MinRes.
MinRes is a diversified resources company focused on its operations in lithium, iron ore, energy and mining services across Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Mineral Resources
