Milbank, Tweed, Hadley & McCloy has represented underwriters JP Morgan Securities, Bank of America Merrill Lynch, and Scotia Capital (USA) in the $450 million inaugural bond offering by Peru’s Minsur S.A., a major tin-mining company with business operations in Peru, Brazil and Chile.
The inaugural 10-year offering of 6.250% senior notes closed February 7, 2014. Proceeds will be used for general corporate purposes, including the funding of capital expenditures.
Lima-based Minsur is one of the world’s top tin producers, operating Peru’s largest and most productive tin mine as well as excavation facilities in Brazil. It also runs a modern metallurgical smelting and refinery plant in Peru. In neighboring Chile, Minsur owns copper- and gold-mining operations and nearly 74% of a cement factory.
Marcelo Mottesi, head of Milbank’s Global Capital Markets group, led the team representing the underwriters. He was assisted by partner Paul Denaro and associates George Naya and Donald Canavaggio; Tax partner Andrew Walker and associate Lysondra Ludwig, and Global Corporate of counsel Matthew Ahrens.
Mr. Mottesi said, “We’re pleased to have worked with a preeminent group of financial institutions in helping structure this first-time bond offering for Minsur. Peru is one of the region’s strongest and most stable economies and Minsur is well positioned as one of the country’s leading natural resources providers. We are looking at a continued pipeline of major offerings in Latin America in the weeks to come.”
The Minsur offering continues a steady flow of capital markets transactions handled recently by Milbank involving major issuers in Peru. The firm advised on five debt offerings by Peruvian companies in 2013 totaling approximately $2.25 billion. That included an $850 million offering of senior notes by leading Peruvian natural gas distributor TgP, the largest corporate debt financing ever in Peru.
About Milbank
Milbank's Latin America Practice Group is one of the most successful and diverse in the region. For the past three years, Milbank has been named the “Top Project Finance Law Firm” in Latin America by Chambers. The group’s attorneys have advised clients on some of the largest and most innovative transactions across the Americas, including Argentina, Brazil, Chile, Colombia, the Dominican Republic, Mexico and Peru. Attorneys in the group specialize in securities, M&A, project finance, private placements, litigation & arbitration.
