10:27 AM EST, 03/05/2024 (MT Newswires) -- National Bank of Canada on Monday outlined Newmont Corp. ( NEM ) 's offering of US$2 billion in senior notes.

The offering comprises US$1 billion in 5.30% notes due in 2026 and US$1 billion in 5.35% notes due in 2034. Closing is expected March 7.

Newmont ( NEM ) plans to use the proceeds to pay off US$1.9 billion currently drawn on the company's revolving credit facility after repaying the bilateral credit debt, which was acquired as part of its acquisition of Newcrest. The remainder will be used for general corporate purposes.

The bank noted Newmont's ( NEM ) goal to reduce its near-term debt burden to US$8 billion through company-generated free cash flow and the sale of non-core assets, while keeping a minimum cash balance of US$3.0 billion.

National Bank expects Newmont ( NEM ) to be active on its US$1.0 billion share buyback program after the company achieved its debt reduction and minimum cash targets.

The bank gave Newmont ( NEM ) an outperform rating with a $54.00 price target.

Price: 45.83, Change: +0.40, Percent Change: +0.88