Mineral Resources shares rise on bond deal pricing boost

The news: Shares in WA-based miner Mineral Resources lifting almost 2% after a notes offering was priced with a higher principal and return overnight.

The numbers: The principal for the 5-year notes offering was boosted from USD850 million ($1.3 billion) to USD1.1 billion, and JPMorgan's debt capital team priced the bond to pay 9.25% interest per annum across two payments, beating initial guidance of around 9%. Note settlement is set to occur in New York on 3 October, and the note will be due in 2028. MIN shares had risen 1.9% to $68.22 at 2:30pm AEST.

The context: The raising follows a similar deal in April 2022, when the miner raised $US1.25 billion across five and eight-year offerings, the Australian Financial Review reports. Mineral Resource last month posted a full-year 40% revenue increase to $4.8 billion and net debt of $1.9 billion, 1.1% of underlying EBITDA. Profit fell by 30% to $244 million.