Chilean Miner CAP S.A.'s Proposed $300 Million Senior Unsecured Notes Rated 'BB+'

SAO PAULO (S&P Global Ratings) April 20, 2021--S&P Global Ratings assigned a 'BB+' issue-level rating on CAP S.A.'s (BB+/Stable/--) proposed senior unsecured notes for $300 million. The Chilean mining company is planning to use the proceeds to refinance upcoming debt maturities, extend the amortization profile, and improve capital structure. The company's debt maturing in 2021 accounts for 68% of total debt, which shortens the weighted average maturity to only 2.1 years. CAP has two domestic bonds of Unidad de Fomento (UF) 3 million ($130 million) maturing on July 1 and Sept. 1, 2021. If the issuance is unsuccessful, we believe the company still has sufficient cash on hand, given that it totaled $557 million in December 2020. Moreover, we expected

...April 20, 2021 SAO PAULO (S&P Global Ratings) April 20, 2021--S&P Global Ratings assigned a '##+' issue-level rating on CAP S.A.'s (##+/Stable/--) proposed senior unsecured notes for $300 million. The Chilean mining company is planning to use the proceeds to refinance upcoming debt maturities, extend the amortization profile, and improve capital structure. The company's debt maturing in 2021 accounts for 68% of total debt, which shortens the weighted average maturity to only 2.1 years. CAP has two domestic bonds of Unidad de Fomento (UF) 3 million ($130 million) maturing on July 1 and Sept. 1, 2021. If the issuance is unsuccessful, we believe the company still has sufficient cash on hand, given that it totaled $557 million in December 2020. Moreover, we expected sound free cash flows amid favorable metals pricing momentum. In contrast with outstanding senior unsecured notes, the proposed notes don't have upstream guarantees from its main cash generating subsidiaries: Compa±fa Minera del...

Ratings Action