Northern Star Resources Limited (ASX: NST) has successfully priced US$600 million of senior guaranteed notes due in April 2033.
Northern Star has three investment grade credit ratings of Baa3 (stable), BBB- (stable) and BBB- (stable) by Moody’s, S&P and Fitch, respectively.
The notes will be issued by Northern Star to investors in the US and be guaranteed by certain wholly owned subsidiaries of Northern Star. Interest will be payable semi-annually at a rate of 6.125% per annum.
Northern Star intends to use the proceeds from the notes for general corporate purposes, including capital expenditures. Such capital expenditures may include the KCGM Expansion Project if and when a final investment decision approving the project is made.
Commenting on the notes issue, Northern Star managing director Stuart Tonkin said:
“We are pleased with the investment grade ratings assigned to Northern Star, which reflect the strength and resilience of the business and our disciplined approach to capital management. Our continued performance and strong financial position have enabled Northern Star to successfully access the US bond market for the first time.
“Proceeds from the Notes will provide Northern Star with further depth and flexibility of funding as we increase profitable production to 2Moz per year by FY2026 and consider other organic growth opportunities including the mill optimisation at KCGM.”