AngloGold Ashanti Ltd. (AU:US), the third- largest gold producer, is planning to sell $750 million of securities in its first offering in more than two years.
The mine operator may sell 10-year bonds to yield about 400 basis points more than similar-maturity Treasuries, according to a person familiar with the transaction. Proceeds will be used for general corporate purposes.
AngloGold last sold debt in April 2010, issuing $700 million of 5.375 percent, 10-year notes to yield 165 basis points more than benchmarks and $300 million of 6.5 percent, 30- year debentures at a spread of 200 basis points, according to data compiled by Bloomberg.
The new bonds may be rated Baa2, the second-lowest level of investment-grade, by Moody’s Investors Service, said the person, who asked not to be identified because the terms are private. Barclays Plc and Citigroup Inc. are managing the sale for the Johannesburg-based company.
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