Vale has announced that its wholly owned subsidiary Vale Overseas Limited plans to offer senior unsecured notes due on 8 July 2030, unconditionally guaranteed by Vale SA.
Fitch Ratings reacted by assigning a ‘BBB-’ rating to notes. The Brazilian miner said it intends to apply the net proceeds from the offering for general corporate purposes.
“The notes will be unsecured obligations of Vale Overseas and will be fully and unconditionally guaranteed by Vale. The guarantees will rank equally in right of payment with all of Vale’s other unsecured and unsubordinated debt obligations,” the company said.
BB Securities Limited, Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Mizuho Securities USA LLC, MUFG Securities Americas Inc and SMBC Nikko Securities America, Inc. are acting as joint lead managers and joint bookrunners.
The offering is being made pursuant to an effective shelf registration statement. A preliminary prospectus supplement with further information about the proposed offering has been filed with the U.S. Securities Exchange Commission (SEC).