The world’s largest gold producer, Barrick Gold Corp. (ABX) and its wholly owned subsidiary, Barrick Australia Finance Pty Ltd., are planning to issue $1.25 billion in debt securities comprised of $400 million of 4.95% notes due 2020 and $850 million of 5.95% notes due 2039. The offering is expected to close on Oct 16. Barrick plans to use the net proceeds from the offering to further reduce the liability related to its floating spot price (fully participating) gold contracts. In September this year, Barrick had raised about $3 billion representing 81.2 million common shares at a price of $36.95 per share as a part of its plan to eliminate gold hedges. Barrick’s gold sales contracts -- which comprise gold hedges and floating contracts -- totaled 9.5 million ounces with a mark-to-market position of negative $5.6 billion. Barrick Gold intends to use $1.9 billion of the net proceeds to

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On September 8th, the world’s largest gold producer, Barrick Gold Corporation (ABX), announced its plans to raise $3 billion from a share offering and use the proceeds to pay off its gold hedges. As of September 7, 2009, Barrick’s gold sales contracts -- which comprise gold hedges and floating contracts -- totaled 9.5 million ounces with a mark-to-market position of negative $5.6 billion. To pay off the hedges, Barrick Gold has entered into an agreement with a syndicate of underwriters for a bought deal public offering for gross proceeds of about $3.0 billion, representing 81.2 million common shares at a price of $36.95 per share. Barrick Gold intends to use $1.9 billion of the net proceeds to eliminate all of its fixed priced gold contracts within the next 12 months and about $1.0 billion to offload a portion of its floating spot price. The company expects ...