SOUTHERN COPPER CORP/ 8-K

What Happened
Southern Copper Corporation announced on June 24, 2026 that it completed a registered public offering of U.S.$1.25 billion aggregate principal amount of 5.350% notes due 2036. The notes bear interest from June 24, 2026, payable semi‑annually on June 24 and December 24 (first payment Dec 24, 2026). Net proceeds after estimated offering expenses and underwriters’ discounts were approximately U.S.$1,241,262,500. The company entered an Underwriting Agreement (June 16, 2026) with BofA Securities, Morgan Stanley, Barclays and Santander, and a Seventh Supplemental Indenture (June 24, 2026) with Computershare Trust Company as trustee to govern the notes. Southern Peru Copper Corporation, Sucursal del Perú (SPCC), the company’s Peruvian branch, will use the net proceeds for development of the Tía María project, SPCC capital expenditures and/or SPCC general corporate purposes (including short‑term working capital). A press release announcing the closing was issued June 25, 2026.

Key Details

• Offering size: U.S.$1.25 billion principal amount of 5.350% notes due 2036.
• Net proceeds: ~U.S.$1,241,262,500 after ~U.S.$2,500,000 of fees/expenses.
• Interest/payments: interest accrues from June 24, 2026; paid semi‑annually on June 24 and Dec 24 (first payment Dec 24, 2026).
• Use of proceeds: funding for Tía María project, SPCC capex program, and SPCC general corporate needs (including working capital).
• Agreements: Underwriting Agreement dated June 16, 2026 (BofA, Morgan Stanley, Barclays, Santander); Seventh Supplemental Indenture dated June 24, 2026 (Computershare trustee). Indenture includes customary covenants limiting certain liens, sale‑leaseback transactions, and certain asset transfers; additional debt may be issued under the Indenture.

Why It Matters
This transaction creates a new long‑term debt obligation for Southern Copper (due 2036) and provides material funding—primarily to its Peruvian branch—for the Tía María project and other capital needs without issuing equity. For investors, that means potential increases in consolidated interest expense and leverage metrics, but also clearer near‑term funding for major capital projects. The Indenture covenants may restrict some corporate actions, and the maturity and fixed interest rate are relevant to the company’s future cash‑flow and refinancing risk.