DBRS Assigns A (low) Rating with Stable Trend to $2 Billion Barrick Debt Issue

DBRS has today assigned a rating of A (low), with a Stable trend, to (1) $1.25 billion of senior unsecured notes maturing April 1, 2022; and (2) $750 million of senior unsecured notes maturing April 1, 2042, to be issued by Barrick Gold Corporation (Barrick or the Company) (collectively, new Barrick Notes). The net proceeds from the new Barrick Notes will be used primarily to repay existing indebtedness under revolving credit facilities used to fund Barrick’s acquisition of copper producer Equinox Minerals Limited (Equinox) in 2011 (see press release “DBRS Downgrades Barrick Gold Ratings to A (low), Stable, Following Successful Tender for Shares of Equinox Minerals” published on June 2, 2011), with the balance being used to finance the development of mining projects and for general corporate purposes.

The new Barrick Notes will be unsecured, unsubordinated obligations of Barrick and will rank equally with the other unsecured, unsubordinated obligations of Barrick. The new Barrick Notes maturing 2022 and the new Barrick Notes maturing 2042 will each be a separate series of debt securities under an indenture dated as of June 1, 2011, between, among others, Barrick, Wilmington Trust Company as trustee and Citibank, N.A. as indenture agent. The indenture and the new Barrick Notes will be governed by and construed in accordance with the laws of the State of New York.

Pursuant to an exchange and registration rights agreement, Barrick has agreed to file a registration statement with the United States Securities and Exchange Commission with respect to an offer to exchange each series of new Barrick Notes for a new issue of debt securities with terms substantially similar to and evidencing the same indebtedness as such new Barrick Notes and which will be registered under the United States Securities Act of 1933, as amended.

Barrick is the world’s largest gold producer, as well as a producer of copper and other metals. The Company had a solid operating year in 2011 despite the weakening of its balance sheet following the acquisition of Equinox in the first half of the year. Barrick’s strong business profile, as well as its good financial metrics, were supported by record-high earnings in 2011 in an environment of robust prices for gold and copper.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodology is Rating Companies in the Mining Industry, which can be found on our website under Methodologies.