Vale announced on Monday it plans to reopen its 6.25 percent notes due 2026 through its wholly-owned subsidiary Vale Overseas Limited.
According to the company, it plans to apply the proceeds from the offering “toward the redemption price of Vale’s EUR 750 million, 4.3 percent notes due 2018, which mature in March 2018, and otherwise for general corporate purposes.”
Vale said the notes will be unsecured obligations of Vale Overseas and will be fully and unconditionally guaranteed by the miner.
“The guarantees will rank equally in right of payment with all of Vale’s other unsecured and unsubordinated debt obligations,” it added.
Brazilian banks Banco Bradesco SA and Banco do Brasil, in addition to JP Morgan Securities LLC, MUFG Securities Americas and Santander Investment Securities Inc will act as joint lead managers.