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Get filing alertsSouthern Copper raises $1.25B in 10-year notes at 5.35% to fund Tia Maria copper project
Filed June 25, 2026 · Period ending June 25, 2026 · ~1 min read
Key Changes
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Completed $1.25 billion unsecured notes offering due 2036 with 5.350% coupon, payable semi-annually starting December 2026. Net proceeds after fees approximately $1.24 billion.
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR → -
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Proceeds earmarked for Tia Maria copper project development in Peru, capital expenditure program at Peruvian branch SPCC, and general corporate purposes including working capital.
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR → -
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Notes rank equally with existing unsecured debt under Seventh Supplemental Indenture, with standard covenants limiting liens, sale-leasebacks, and major asset transfers.
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR →
Summary
Southern Copper completed a $1.25 billion debt offering, issuing 10-year unsecured notes at a 5.350% coupon rate. The financing adds material long-term debt to the balance sheet and increases annual interest expense by approximately $67 million. The notes rank pari passu with existing unsecured obligations and include standard investment-grade covenants.
The net proceeds of $1.24 billion will primarily fund the Tia Maria copper project, a significant development initiative in Peru that has faced regulatory and community challenges in the past. Additional funds will support the capital expenditure program at the company's Peruvian branch and general corporate needs.
For copper investors, this represents a concrete funding commitment to a major growth project that could materially expand production capacity if successfully developed. The 5.35% rate reflects current market conditions for investment-grade mining debt.
Section-by-Section Diff
Event · Item 1.01 — Entry into a Material Definitive Agreement
Item 1.01 — Entry into a Material Definitive Agreement filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
On June 16, 2026, the Company entered into an Underwriting Agreement, dated June 16, 2026 (the “Underwriting Agreement”), with BofA Securities, Inc., Morgan Stanley & Co. LLC, Barclays Capital Inc. and Santander US Capital Markets LLC (collectively, the “Underwriters”), in connection with the issuance and sale by the Company of the Notes.
The company engaged four major investment banks as underwriters for the offering. The agreement includes standard representations, warranties, covenants, and indemnification provisions typical for public debt offerings.
Added in current filing · verify on EDGAR →
Pursuant to an Indenture, dated April 16, 2010 (the “Indenture”), between the Company and Computershare Trust Company, National Association, as trustee (the “Trustee”), the Company and the Trustee entered into a Seventh Supplemental Indenture dated as of June 24, 2026 (the “Seventh Supplemental Indenture”). The Seventh Supplemental Indenture provides for the issuance, and set forth the terms of, the Notes. The Indenture and the Seventh Supplemental Indenture contain covenants that limit the Company’s ability to, among other things, incur certain liens securing indebtedness, engage in certain sale and leaseback transactions, and enter into certain consolidations, mergers, conveyances, transfers or leases of all or substantially all the Company’s assets.
The notes were issued under a supplemental indenture to the company's existing 2010 base indenture. The indenture includes standard protective covenants limiting liens, sale-leasebacks, and major corporate transactions, providing creditor protections typical for investment-grade debt.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 25, 2026 · How we verify